Correlation Between Citigroup and KCAP FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Citigroup and KCAP FINANCIAL 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 KCAP FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and KCAP FINANCIAL, you can compare the effects of market volatilities on Citigroup and KCAP FINANCIAL 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 KCAP FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and KCAP FINANCIAL.
Diversification Opportunities for Citigroup and KCAP FINANCIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and KCAP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and KCAP FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCAP FINANCIAL 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 KCAP FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCAP FINANCIAL has no effect on the direction of Citigroup i.e., Citigroup and KCAP FINANCIAL go up and down completely randomly.
Pair Corralation between Citigroup and KCAP FINANCIAL
If you would invest 4,676 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,411 from holding Citigroup or generate 51.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. KCAP FINANCIAL
Performance |
| Timeline |
| Citigroup |
| KCAP FINANCIAL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and KCAP FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and KCAP FINANCIAL
The main advantage of trading using opposite Citigroup and KCAP FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, KCAP FINANCIAL 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 KCAP FINANCIAL will offset losses from the drop in KCAP FINANCIAL's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| KCAP FINANCIAL vs. Data3 Limited | KCAP FINANCIAL vs. DICKER DATA LTD | KCAP FINANCIAL vs. Public Storage | KCAP FINANCIAL vs. Science Applications International |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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