Correlation Between Citigroup and PT Kusuma
Can any of the company-specific risk be diversified away by investing in both Citigroup and PT Kusuma 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 PT Kusuma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PT Kusuma Kemindo, you can compare the effects of market volatilities on Citigroup and PT Kusuma 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 PT Kusuma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PT Kusuma.
Diversification Opportunities for Citigroup and PT Kusuma
Pay attention - limited upside
The 3 months correlation between Citigroup and KKES is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PT Kusuma Kemindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Kusuma Kemindo 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 PT Kusuma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Kusuma Kemindo has no effect on the direction of Citigroup i.e., Citigroup and PT Kusuma go up and down completely randomly.
Pair Corralation between Citigroup and PT Kusuma
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.27 times more return on investment than PT Kusuma. However, Citigroup is 1.27 times more volatile than PT Kusuma Kemindo. It trades about 0.27 of its potential returns per unit of risk. PT Kusuma Kemindo is currently generating about -0.47 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. PT Kusuma Kemindo
Performance |
| Timeline |
| Citigroup |
| PT Kusuma Kemindo |
Citigroup and PT Kusuma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PT Kusuma
The main advantage of trading using opposite Citigroup and PT Kusuma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PT Kusuma 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 PT Kusuma will offset losses from the drop in PT Kusuma's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| PT Kusuma vs. PT Hetzer Medical | PT Kusuma vs. Bangun Karya Perkasa | PT Kusuma vs. PT Dewi Shri | PT Kusuma vs. PT Sari Kreasi |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |