Correlation Between Citigroup and Elin Electronics
Can any of the company-specific risk be diversified away by investing in both Citigroup and Elin Electronics 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 Elin Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Elin Electronics Limited, you can compare the effects of market volatilities on Citigroup and Elin Electronics 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 Elin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Elin Electronics.
Diversification Opportunities for Citigroup and Elin Electronics
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Elin is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Elin Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elin Electronics 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 Elin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elin Electronics has no effect on the direction of Citigroup i.e., Citigroup and Elin Electronics go up and down completely randomly.
Pair Corralation between Citigroup and Elin Electronics
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.57 times more return on investment than Elin Electronics. However, Citigroup is 1.76 times less risky than Elin Electronics. It trades about 0.1 of its potential returns per unit of risk. Elin Electronics Limited is currently generating about -0.12 per unit of risk. If you would invest 9,483 in Citigroup on September 5, 2025 and sell it today you would earn a total of 836.00 from holding Citigroup or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Elin Electronics Limited
Performance |
| Timeline |
| Citigroup |
| Elin Electronics |
Citigroup and Elin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Elin Electronics
The main advantage of trading using opposite Citigroup and Elin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Elin Electronics 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 Elin Electronics will offset losses from the drop in Elin Electronics' long position.| Citigroup vs. Canadian Imperial Bank | Citigroup vs. KB Financial Group | Citigroup vs. Nu Holdings | Citigroup vs. Royal Bank of |
| Elin Electronics vs. Vishnu Chemicals Limited | Elin Electronics vs. Zuari Agro Chemicals | Elin Electronics vs. Modi Rubber Limited | Elin Electronics vs. Hindcon Chemicals Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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