Correlation Between Citigroup and Nippon India
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By analyzing existing cross correlation between Citigroup and Nippon India ETF, you can compare the effects of market volatilities on Citigroup and Nippon India 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 Nippon India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nippon India.
Diversification Opportunities for Citigroup and Nippon India
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Nippon is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nippon India ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nippon India ETF 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 Nippon India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nippon India ETF has no effect on the direction of Citigroup i.e., Citigroup and Nippon India go up and down completely randomly.
Pair Corralation between Citigroup and Nippon India
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.48 times more return on investment than Nippon India. However, Citigroup is 2.48 times more volatile than Nippon India ETF. It trades about 0.13 of its potential returns per unit of risk. Nippon India ETF is currently generating about -0.18 per unit of risk. If you would invest 6,092 in Citigroup on September 2, 2024 and sell it today you would earn a total of 995.00 from holding Citigroup or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Nippon India ETF
Performance |
| Timeline |
| Citigroup |
| Nippon India ETF |
Citigroup and Nippon India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nippon India
The main advantage of trading using opposite Citigroup and Nippon India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nippon India 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 Nippon India will offset losses from the drop in Nippon India's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Nippon India vs. Kingfa Science Technology | Nippon India vs. GTL Limited | Nippon India vs. Agro Phos India | Nippon India vs. Indo Amines 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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