Correlation Between Citigroup and Kingclean Electric
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By analyzing existing cross correlation between Citigroup and Kingclean Electric Co, you can compare the effects of market volatilities on Citigroup and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kingclean Electric.
Diversification Opportunities for Citigroup and Kingclean Electric
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Kingclean is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Citigroup i.e., Citigroup and Kingclean Electric go up and down completely randomly.
Pair Corralation between Citigroup and Kingclean Electric
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.77 times more return on investment than Kingclean Electric. However, Citigroup is 1.31 times less risky than Kingclean Electric. It trades about 0.07 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.01 per unit of risk. If you would invest 4,117 in Citigroup on August 28, 2024 and sell it today you would earn a total of 2,958 from holding Citigroup or generate 71.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.16% |
| Values | Daily Returns |
Citigroup vs. Kingclean Electric Co
Performance |
| Timeline |
| Citigroup |
| Kingclean Electric |
Citigroup and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kingclean Electric
The main advantage of trading using opposite Citigroup and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Kingclean Electric vs. Kweichow Moutai Co | Kingclean Electric vs. NAURA Technology Group | Kingclean Electric vs. Zhejiang Orient Gene | Kingclean Electric vs. APT Medical |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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