Correlation Between Citigroup and Kung Long
Can any of the company-specific risk be diversified away by investing in both Citigroup and Kung Long 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 Kung Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Kung Long Batteries, you can compare the effects of market volatilities on Citigroup and Kung Long 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 Kung Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kung Long.
Diversification Opportunities for Citigroup and Kung Long
Average diversification
The 3 months correlation between Citigroup and Kung is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kung Long Batteries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kung Long Batteries 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 Kung Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kung Long Batteries has no effect on the direction of Citigroup i.e., Citigroup and Kung Long go up and down completely randomly.
Pair Corralation between Citigroup and Kung Long
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.15 times more return on investment than Kung Long. However, Citigroup is 2.15 times more volatile than Kung Long Batteries. It trades about 0.29 of its potential returns per unit of risk. Kung Long Batteries is currently generating about 0.1 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Kung Long Batteries
Performance |
| Timeline |
| Citigroup |
| Kung Long Batteries |
Citigroup and Kung Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kung Long
The main advantage of trading using opposite Citigroup and Kung Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kung Long 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 Kung Long will offset losses from the drop in Kung Long's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Kung Long vs. Sunny Friend Environmental | Kung Long vs. TTET Union Corp | Kung Long vs. ECOVE Environment Corp | Kung Long vs. Yulon Finance Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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