Correlation Between Citigroup and Tera Software
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By analyzing existing cross correlation between Citigroup and Tera Software Limited, you can compare the effects of market volatilities on Citigroup and Tera Software 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 Tera Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tera Software.
Diversification Opportunities for Citigroup and Tera Software
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Tera is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tera Software Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tera Software Limited 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 Tera Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tera Software Limited has no effect on the direction of Citigroup i.e., Citigroup and Tera Software go up and down completely randomly.
Pair Corralation between Citigroup and Tera Software
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.57 times more return on investment than Tera Software. However, Citigroup is 1.76 times less risky than Tera Software. It trades about 0.07 of its potential returns per unit of risk. Tera Software Limited is currently generating about -0.11 per unit of risk. If you would invest 7,196 in Citigroup on October 12, 2024 and sell it today you would earn a total of 130.00 from holding Citigroup or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Tera Software Limited
Performance |
| Timeline |
| Citigroup |
| Tera Software Limited |
Citigroup and Tera Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tera Software
The main advantage of trading using opposite Citigroup and Tera Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tera Software 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 Tera Software will offset losses from the drop in Tera Software's long position.| Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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