Correlation Between Citigroup and Zoomcar Holdings
Can any of the company-specific risk be diversified away by investing in both Citigroup and Zoomcar Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Zoomcar Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Zoomcar Holdings, you can compare the effects of market volatilities on Citigroup and Zoomcar Holdings 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 Zoomcar Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zoomcar Holdings.
Diversification Opportunities for Citigroup and Zoomcar Holdings
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Zoomcar is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zoomcar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomcar Holdings 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 Zoomcar Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomcar Holdings has no effect on the direction of Citigroup i.e., Citigroup and Zoomcar Holdings go up and down completely randomly.
Pair Corralation between Citigroup and Zoomcar Holdings
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.5 times less return on investment than Zoomcar Holdings. But when comparing it to its historical volatility, Citigroup is 14.17 times less risky than Zoomcar Holdings. It trades about 0.21 of its potential returns per unit of risk. Zoomcar Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1.94 in Zoomcar Holdings on August 31, 2024 and sell it today you would lose (0.29) from holding Zoomcar Holdings or give up 14.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Zoomcar Holdings
Performance |
| Timeline |
| Citigroup |
| Zoomcar Holdings |
Citigroup and Zoomcar Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zoomcar Holdings
The main advantage of trading using opposite Citigroup and Zoomcar Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zoomcar Holdings 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 Zoomcar Holdings will offset losses from the drop in Zoomcar Holdings' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Zoomcar Holdings vs. Vita Coco | Zoomcar Holdings vs. Fomento Economico Mexicano | Zoomcar Holdings vs. Highway Holdings Limited | Zoomcar Holdings vs. Electrovaya Common Shares |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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