Correlation Between Citigroup and KBC Groep
Can any of the company-specific risk be diversified away by investing in both Citigroup and KBC Groep 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 KBC Groep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and KBC Groep NV, you can compare the effects of market volatilities on Citigroup and KBC Groep 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 KBC Groep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and KBC Groep.
Diversification Opportunities for Citigroup and KBC Groep
Weak diversification
The 3 months correlation between Citigroup and KBC is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and KBC Groep NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Groep NV 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 KBC Groep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Groep NV has no effect on the direction of Citigroup i.e., Citigroup and KBC Groep go up and down completely randomly.
Pair Corralation between Citigroup and KBC Groep
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.55 times more return on investment than KBC Groep. However, Citigroup is 1.55 times more volatile than KBC Groep NV. It trades about 0.23 of its potential returns per unit of risk. KBC Groep NV is currently generating about 0.08 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. KBC Groep NV
Performance |
| Timeline |
| Citigroup |
| KBC Groep NV |
Citigroup and KBC Groep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and KBC Groep
The main advantage of trading using opposite Citigroup and KBC Groep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, KBC Groep 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 KBC Groep will offset losses from the drop in KBC Groep's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| KBC Groep vs. ageas SANV | KBC Groep vs. Solvay SA | KBC Groep vs. Etablissementen Franz Colruyt | KBC Groep vs. Groep Brussel Lambert |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |