Correlation Between Citigroup and UCO Bank
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By analyzing existing cross correlation between Citigroup and UCO Bank, you can compare the effects of market volatilities on Citigroup and UCO Bank 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 UCO Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and UCO Bank.
Diversification Opportunities for Citigroup and UCO Bank
Good diversification
The 3 months correlation between Citigroup and UCO is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and UCO Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCO Bank 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 UCO Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCO Bank has no effect on the direction of Citigroup i.e., Citigroup and UCO Bank go up and down completely randomly.
Pair Corralation between Citigroup and UCO Bank
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.38 times more return on investment than UCO Bank. However, Citigroup is 2.62 times less risky than UCO Bank. It trades about 0.45 of its potential returns per unit of risk. UCO Bank is currently generating about -0.03 per unit of risk. If you would invest 6,842 in Citigroup on October 20, 2024 and sell it today you would earn a total of 1,157 from holding Citigroup or generate 16.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Citigroup vs. UCO Bank
Performance |
Timeline |
Citigroup |
UCO Bank |
Citigroup and UCO Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and UCO Bank
The main advantage of trading using opposite Citigroup and UCO Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, UCO Bank 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 UCO Bank will offset losses from the drop in UCO Bank's long position.Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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