Correlation Between Citigroup and Tae Kwang
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tae Kwang 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 Tae Kwang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tae Kwang, you can compare the effects of market volatilities on Citigroup and Tae Kwang 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 Tae Kwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tae Kwang.
Diversification Opportunities for Citigroup and Tae Kwang
Almost no diversification
The 3 months correlation between Citigroup and Tae is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tae Kwang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tae Kwang 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 Tae Kwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tae Kwang has no effect on the direction of Citigroup i.e., Citigroup and Tae Kwang go up and down completely randomly.
Pair Corralation between Citigroup and Tae Kwang
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.56 times more return on investment than Tae Kwang. However, Citigroup is 1.8 times less risky than Tae Kwang. It trades about 0.08 of its potential returns per unit of risk. Tae Kwang is currently generating about 0.04 per unit of risk. If you would invest 4,468 in Citigroup on November 29, 2024 and sell it today you would earn a total of 3,419 from holding Citigroup or generate 76.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 96.96% |
| Values | Daily Returns |
Citigroup vs. Tae Kwang
Performance |
| Timeline |
| Citigroup |
| Tae Kwang |
Citigroup and Tae Kwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tae Kwang
The main advantage of trading using opposite Citigroup and Tae Kwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tae Kwang 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 Tae Kwang will offset losses from the drop in Tae Kwang's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tae Kwang vs. Sung Kwang Bend | Tae Kwang vs. Taewoong CoLtd | Tae Kwang vs. SFA Engineering | Tae Kwang vs. Soulbrain Holdings 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stocks Directory Find actively traded stocks across global markets |