Correlation Between Citigroup and Kuangda Technology
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By analyzing existing cross correlation between Citigroup and Kuangda Technology Group, you can compare the effects of market volatilities on Citigroup and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kuangda Technology.
Diversification Opportunities for Citigroup and Kuangda Technology
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Kuangda is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Citigroup i.e., Citigroup and Kuangda Technology go up and down completely randomly.
Pair Corralation between Citigroup and Kuangda Technology
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.6 times more return on investment than Kuangda Technology. However, Citigroup is 1.68 times less risky than Kuangda Technology. It trades about 0.11 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.06 per unit of risk. If you would invest 5,308 in Citigroup on November 3, 2024 and sell it today you would earn a total of 2,835 from holding Citigroup or generate 53.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.76% |
| Values | Daily Returns |
Citigroup vs. Kuangda Technology Group
Performance |
| Timeline |
| Citigroup |
| Kuangda Technology |
Citigroup and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kuangda Technology
The main advantage of trading using opposite Citigroup and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Kuangda Technology vs. StarPower Semiconductor | Kuangda Technology vs. New Hope Dairy | Kuangda Technology vs. Suzhou Oriental Semiconductor | Kuangda Technology vs. Qingdao Foods Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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