Correlation Between Citigroup and Kginicis CoLtd
Can any of the company-specific risk be diversified away by investing in both Citigroup and Kginicis CoLtd 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 Kginicis CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Kginicis CoLtd, you can compare the effects of market volatilities on Citigroup and Kginicis CoLtd 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 Kginicis CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kginicis CoLtd.
Diversification Opportunities for Citigroup and Kginicis CoLtd
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Kginicis is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kginicis CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kginicis CoLtd 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 Kginicis CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kginicis CoLtd has no effect on the direction of Citigroup i.e., Citigroup and Kginicis CoLtd go up and down completely randomly.
Pair Corralation between Citigroup and Kginicis CoLtd
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.98 times more return on investment than Kginicis CoLtd. However, Citigroup is 1.02 times less risky than Kginicis CoLtd. It trades about 0.09 of its potential returns per unit of risk. Kginicis CoLtd is currently generating about -0.03 per unit of risk. If you would invest 4,403 in Citigroup on August 28, 2024 and sell it today you would earn a total of 2,672 from holding Citigroup or generate 60.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.05% |
| Values | Daily Returns |
Citigroup vs. Kginicis CoLtd
Performance |
| Timeline |
| Citigroup |
| Kginicis CoLtd |
Citigroup and Kginicis CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kginicis CoLtd
The main advantage of trading using opposite Citigroup and Kginicis CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kginicis CoLtd 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 Kginicis CoLtd will offset losses from the drop in Kginicis CoLtd's long position.The idea behind Citigroup and Kginicis CoLtd 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.| Kginicis CoLtd vs. NHN KCP Corp | Kginicis CoLtd vs. AfreecaTV Co | Kginicis CoLtd vs. LEENO Industrial | Kginicis CoLtd vs. CJ ENM |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |