Correlation Between Citigroup and KebNi AB
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By analyzing existing cross correlation between Citigroup and KebNi AB, you can compare the effects of market volatilities on Citigroup and KebNi AB 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 KebNi AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and KebNi AB.
Diversification Opportunities for Citigroup and KebNi AB
Very weak diversification
The 3 months correlation between Citigroup and KebNi is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and KebNi AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KebNi AB 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 KebNi AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KebNi AB has no effect on the direction of Citigroup i.e., Citigroup and KebNi AB go up and down completely randomly.
Pair Corralation between Citigroup and KebNi AB
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the KebNi AB. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 2.82 times less risky than KebNi AB. The stock trades about -0.04 of its potential returns per unit of risk. The KebNi AB is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 106.00 in KebNi AB on November 28, 2024 and sell it today you would earn a total of 24.00 from holding KebNi AB or generate 22.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. KebNi AB
Performance |
| Timeline |
| Citigroup |
| KebNi AB |
Citigroup and KebNi AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and KebNi AB
The main advantage of trading using opposite Citigroup and KebNi AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, KebNi AB 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 KebNi AB will offset losses from the drop in KebNi AB's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| KebNi AB vs. Clinical Laserthermia Systems | KebNi AB vs. Net Insight AB | KebNi AB vs. Karolinska Development AB | KebNi AB vs. Mekonomen AB |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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