Correlation Between Citigroup and SBI Life
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By analyzing existing cross correlation between Citigroup and SBI Life Insurance, you can compare the effects of market volatilities on Citigroup and SBI Life and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of SBI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and SBI Life.
Diversification Opportunities for Citigroup and SBI Life
Pay attention - limited upside
The 3 months correlation between Citigroup and SBI is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and SBI Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Life Insurance and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with SBI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Life Insurance has no effect on the direction of Citigroup i.e., Citigroup and SBI Life go up and down completely randomly.
Pair Corralation between Citigroup and SBI Life
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.14 times more return on investment than SBI Life. However, Citigroup is 1.14 times more volatile than SBI Life Insurance. It trades about 0.09 of its potential returns per unit of risk. SBI Life Insurance is currently generating about -0.01 per unit of risk. If you would invest 5,422 in Citigroup on August 25, 2024 and sell it today you would earn a total of 1,562 from holding Citigroup or generate 28.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.84% |
| Values | Daily Returns |
Citigroup vs. SBI Life Insurance
Performance |
| Timeline |
| Citigroup |
| SBI Life Insurance |
Citigroup and SBI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and SBI Life
The main advantage of trading using opposite Citigroup and SBI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, SBI Life can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SBI Life will offset losses from the drop in SBI Life's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| SBI Life vs. Heritage Foods Limited | SBI Life vs. Juniper Hotels | SBI Life vs. EIH Associated Hotels | SBI Life vs. Chalet Hotels Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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