Correlation Between Citigroup and Knights Of
Can any of the company-specific risk be diversified away by investing in both Citigroup and Knights Of 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 Knights Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Knights Of Umbus, you can compare the effects of market volatilities on Citigroup and Knights Of 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 Knights Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Knights Of.
Diversification Opportunities for Citigroup and Knights Of
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Knights is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Knights Of Umbus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knights Of Umbus 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 Knights Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knights Of Umbus has no effect on the direction of Citigroup i.e., Citigroup and Knights Of go up and down completely randomly.
Pair Corralation between Citigroup and Knights Of
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.04 times more return on investment than Knights Of. However, Citigroup is 6.04 times more volatile than Knights Of Umbus. It trades about 0.27 of its potential returns per unit of risk. Knights Of Umbus is currently generating about 0.21 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Knights Of Umbus
Performance |
| Timeline |
| Citigroup |
| Knights Of Umbus |
Citigroup and Knights Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Knights Of
The main advantage of trading using opposite Citigroup and Knights Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Knights Of 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 Knights Of will offset losses from the drop in Knights Of's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Knights Of vs. Forum Real Estate | Knights Of vs. Columbia Real Estate | Knights Of vs. Commonwealth Real Estate | Knights Of vs. Prudential Real Estate |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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