Correlation Between Citigroup and Bodal Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and Bodal Chemicals Limited, you can compare the effects of market volatilities on Citigroup and Bodal Chemicals 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 Bodal Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Bodal Chemicals.
Diversification Opportunities for Citigroup and Bodal Chemicals
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Bodal is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Bodal Chemicals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bodal Chemicals 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 Bodal Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bodal Chemicals has no effect on the direction of Citigroup i.e., Citigroup and Bodal Chemicals go up and down completely randomly.
Pair Corralation between Citigroup and Bodal Chemicals
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.67 times more return on investment than Bodal Chemicals. However, Citigroup is 1.5 times less risky than Bodal Chemicals. It trades about 0.07 of its potential returns per unit of risk. Bodal Chemicals Limited is currently generating about 0.0 per unit of risk. If you would invest 4,308 in Citigroup on September 26, 2024 and sell it today you would earn a total of 2,792 from holding Citigroup or generate 64.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 97.98% |
Values | Daily Returns |
Citigroup vs. Bodal Chemicals Limited
Performance |
Timeline |
Citigroup |
Bodal Chemicals |
Citigroup and Bodal Chemicals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Bodal Chemicals
The main advantage of trading using opposite Citigroup and Bodal Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Bodal Chemicals 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 Bodal Chemicals will offset losses from the drop in Bodal Chemicals' long position.The idea behind Citigroup and Bodal Chemicals Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Bodal Chemicals vs. NMDC Limited | Bodal Chemicals vs. Steel Authority of | Bodal Chemicals vs. Embassy Office Parks | Bodal Chemicals vs. Gujarat Narmada Valley |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |