Correlation Between Citigroup and KraneShares Bosera
Can any of the company-specific risk be diversified away by investing in both Citigroup and KraneShares Bosera 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 KraneShares Bosera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and KraneShares Bosera MSCI, you can compare the effects of market volatilities on Citigroup and KraneShares Bosera 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 KraneShares Bosera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and KraneShares Bosera.
Diversification Opportunities for Citigroup and KraneShares Bosera
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and KraneShares is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and KraneShares Bosera MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Bosera MSCI 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 KraneShares Bosera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Bosera MSCI has no effect on the direction of Citigroup i.e., Citigroup and KraneShares Bosera go up and down completely randomly.
Pair Corralation between Citigroup and KraneShares Bosera
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.96 times more return on investment than KraneShares Bosera. However, Citigroup is 1.05 times less risky than KraneShares Bosera. It trades about 0.23 of its potential returns per unit of risk. KraneShares Bosera MSCI is currently generating about -0.13 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 624.00 from holding Citigroup or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. KraneShares Bosera MSCI
Performance |
| Timeline |
| Citigroup |
| KraneShares Bosera MSCI |
Citigroup and KraneShares Bosera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and KraneShares Bosera
The main advantage of trading using opposite Citigroup and KraneShares Bosera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, KraneShares Bosera 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 KraneShares Bosera will offset losses from the drop in KraneShares Bosera's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| KraneShares Bosera vs. Global X MSCI | KraneShares Bosera vs. KraneShares MSCI All | KraneShares Bosera vs. Xtrackers Harvest CSI |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |