Correlation Between Citigroup and Koios Beverage
Can any of the company-specific risk be diversified away by investing in both Citigroup and Koios Beverage 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 Koios Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Koios Beverage Corp, you can compare the effects of market volatilities on Citigroup and Koios Beverage 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 Koios Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Koios Beverage.
Diversification Opportunities for Citigroup and Koios Beverage
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Koios is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Koios Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koios Beverage Corp 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 Koios Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koios Beverage Corp has no effect on the direction of Citigroup i.e., Citigroup and Koios Beverage go up and down completely randomly.
Pair Corralation between Citigroup and Koios Beverage
Taking into account the 90-day investment horizon Citigroup is expected to generate 65.32 times less return on investment than Koios Beverage. But when comparing it to its historical volatility, Citigroup is 45.62 times less risky than Koios Beverage. It trades about 0.07 of its potential returns per unit of risk. Koios Beverage Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Koios Beverage Corp on September 1, 2024 and sell it today you would lose (18.60) from holding Koios Beverage Corp or give up 93.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Koios Beverage Corp
Performance |
| Timeline |
| Citigroup |
| Koios Beverage Corp |
Citigroup and Koios Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Koios Beverage
The main advantage of trading using opposite Citigroup and Koios Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Koios Beverage 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 Koios Beverage will offset losses from the drop in Koios Beverage's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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