Correlation Between Citigroup and Moksh Ornaments

Can any of the company-specific risk be diversified away by investing in both Citigroup and Moksh Ornaments 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 Moksh Ornaments into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and Moksh Ornaments Limited, you can compare the effects of market volatilities on Citigroup and Moksh Ornaments 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 Moksh Ornaments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Moksh Ornaments.

Diversification Opportunities for Citigroup and Moksh Ornaments

0.12

Correlation Coefficient

Citigroup  Moksh Ornaments

Average diversification

The 3 months correlation between Citigroup and Moksh is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Moksh Ornaments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moksh Ornaments 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 Moksh Ornaments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moksh Ornaments has no effect on the direction of Citigroup i.e., Citigroup and Moksh Ornaments go up and down completely randomly.

Pair Corralation between Citigroup and Moksh Ornaments

Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Moksh Ornaments. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 4.78 times less risky than Moksh Ornaments. The stock trades about -0.04 of its potential returns per unit of risk. The Moksh Ornaments Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2,105  in Moksh Ornaments Limited on October 8, 2024 and sell it today you would lose (45.00) from holding Moksh Ornaments Limited or give up 2.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Citigroup  vs.  Moksh Ornaments Limited

Citigroup

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Moksh Ornaments

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Moksh Ornaments Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady forward-looking signals, Moksh Ornaments displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Moksh Ornaments

The main advantage of trading using opposite Citigroup and Moksh Ornaments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Moksh Ornaments 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 Moksh Ornaments will offset losses from the drop in Moksh Ornaments' long position.

The idea behind Citigroup and Moksh Ornaments 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.