Correlation Between Citigroup and Korea Real
Can any of the company-specific risk be diversified away by investing in both Citigroup and Korea Real 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 Korea Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Korea Real Estate, you can compare the effects of market volatilities on Citigroup and Korea Real 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 Korea Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Korea Real.
Diversification Opportunities for Citigroup and Korea Real
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Korea is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Korea Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Real Estate 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 Korea Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Real Estate has no effect on the direction of Citigroup i.e., Citigroup and Korea Real go up and down completely randomly.
Pair Corralation between Citigroup and Korea Real
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.74 times more return on investment than Korea Real. However, Citigroup is 1.74 times more volatile than Korea Real Estate. It trades about 0.06 of its potential returns per unit of risk. Korea Real Estate is currently generating about -0.05 per unit of risk. If you would invest 4,733 in Citigroup on August 27, 2024 and sell it today you would earn a total of 2,251 from holding Citigroup or generate 47.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.14% |
| Values | Daily Returns |
Citigroup vs. Korea Real Estate
Performance |
| Timeline |
| Citigroup |
| Korea Real Estate |
Citigroup and Korea Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Korea Real
The main advantage of trading using opposite Citigroup and Korea Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Korea Real 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 Korea Real will offset losses from the drop in Korea Real's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Korea Real vs. Samsung Electronics Co | Korea Real vs. Samsung Electronics Co | Korea Real vs. LG Energy Solution | Korea Real vs. SK Hynix |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |