Correlation Between Citigroup and Kempower Oyj
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By analyzing existing cross correlation between Citigroup and Kempower Oyj, you can compare the effects of market volatilities on Citigroup and Kempower Oyj 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 Kempower Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kempower Oyj.
Diversification Opportunities for Citigroup and Kempower Oyj
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Kempower is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kempower Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kempower Oyj 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 Kempower Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kempower Oyj has no effect on the direction of Citigroup i.e., Citigroup and Kempower Oyj go up and down completely randomly.
Pair Corralation between Citigroup and Kempower Oyj
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.69 times more return on investment than Kempower Oyj. However, Citigroup is 1.45 times less risky than Kempower Oyj. It trades about 0.21 of its potential returns per unit of risk. Kempower Oyj is currently generating about -0.2 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Kempower Oyj
Performance |
| Timeline |
| Citigroup |
| Kempower Oyj |
Citigroup and Kempower Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kempower Oyj
The main advantage of trading using opposite Citigroup and Kempower Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kempower Oyj 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 Kempower Oyj will offset losses from the drop in Kempower Oyj's long position.The idea behind Citigroup and Kempower Oyj pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kempower Oyj vs. Oma Saastopankki Oyj | Kempower Oyj vs. Tecnotree Oyj | Kempower Oyj vs. Tokmanni Group Oyj | Kempower Oyj vs. Vaisala Oyj A |
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.
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