Correlation Between Citigroup and KCP Sugar
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and KCP Sugar and, you can compare the effects of market volatilities on Citigroup and KCP Sugar 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 KCP Sugar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and KCP Sugar.
Diversification Opportunities for Citigroup and KCP Sugar
Pay attention - limited upside
The 3 months correlation between Citigroup and KCP is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and KCP Sugar and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCP Sugar 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 KCP Sugar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCP Sugar has no effect on the direction of Citigroup i.e., Citigroup and KCP Sugar go up and down completely randomly.
Pair Corralation between Citigroup and KCP Sugar
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.5 times more return on investment than KCP Sugar. However, Citigroup is 2.0 times less risky than KCP Sugar. It trades about -0.04 of its potential returns per unit of risk. KCP Sugar and is currently generating about -0.13 per unit of risk. If you would invest 8,051 in Citigroup on November 28, 2024 and sell it today you would lose (144.00) from holding Citigroup or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. KCP Sugar and
Performance |
| Timeline |
| Citigroup |
| KCP Sugar |
Citigroup and KCP Sugar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and KCP Sugar
The main advantage of trading using opposite Citigroup and KCP Sugar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, KCP Sugar 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 KCP Sugar will offset losses from the drop in KCP Sugar's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| KCP Sugar vs. MEDI ASSIST HEALTHCARE | KCP Sugar vs. Lotus Eye Hospital | KCP Sugar vs. Zota Health Care | KCP Sugar vs. Ankit Metal Power |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |