Correlation Between Citigroup and Zomato
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By analyzing existing cross correlation between Citigroup and Zomato Limited, you can compare the effects of market volatilities on Citigroup and Zomato 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 Zomato. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zomato.
Diversification Opportunities for Citigroup and Zomato
Modest diversification
The 3 months correlation between Citigroup and Zomato is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zomato Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zomato 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 Zomato. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zomato Limited has no effect on the direction of Citigroup i.e., Citigroup and Zomato go up and down completely randomly.
Pair Corralation between Citigroup and Zomato
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.24 times less return on investment than Zomato. But when comparing it to its historical volatility, Citigroup is 1.32 times less risky than Zomato. It trades about 0.09 of its potential returns per unit of risk. Zomato Limited is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 18,861 in Zomato Limited on September 15, 2024 and sell it today you would earn a total of 9,964 from holding Zomato Limited or generate 52.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Zomato Limited
Performance |
| Timeline |
| Citigroup |
| Zomato Limited |
Citigroup and Zomato Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zomato
The main advantage of trading using opposite Citigroup and Zomato positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zomato 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 Zomato will offset losses from the drop in Zomato's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Zomato vs. Samhi Hotels Limited | Zomato vs. Agro Tech Foods | Zomato vs. Sasken Technologies Limited | Zomato vs. Apollo Sindoori Hotels |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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