Correlation Between Citigroup and Kinea Fundo
Can any of the company-specific risk be diversified away by investing in both Citigroup and Kinea Fundo 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 Kinea Fundo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Kinea Fundo Fundos, you can compare the effects of market volatilities on Citigroup and Kinea Fundo 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 Kinea Fundo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kinea Fundo.
Diversification Opportunities for Citigroup and Kinea Fundo
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Kinea is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kinea Fundo Fundos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Fundo Fundos 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 Kinea Fundo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Fundo Fundos has no effect on the direction of Citigroup i.e., Citigroup and Kinea Fundo go up and down completely randomly.
Pair Corralation between Citigroup and Kinea Fundo
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.4 times more return on investment than Kinea Fundo. However, Citigroup is 1.4 times more volatile than Kinea Fundo Fundos. It trades about 0.08 of its potential returns per unit of risk. Kinea Fundo Fundos is currently generating about -0.02 per unit of risk. If you would invest 4,558 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,529 from holding Citigroup or generate 55.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Citigroup vs. Kinea Fundo Fundos
Performance |
| Timeline |
| Citigroup |
| Kinea Fundo Fundos |
Citigroup and Kinea Fundo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kinea Fundo
The main advantage of trading using opposite Citigroup and Kinea Fundo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kinea Fundo 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 Kinea Fundo will offset losses from the drop in Kinea Fundo's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Kinea Fundo vs. ASA METROPOLIS FUNDO | Kinea Fundo vs. V2 Recebveis Imobilirios | Kinea Fundo vs. DEVANT PROPERTIES FUNDO | Kinea Fundo vs. Hedge Aaa Fundo |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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