Correlation Between Citigroup and Klaria Pharma
Can any of the company-specific risk be diversified away by investing in both Citigroup and Klaria Pharma 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 Klaria Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Klaria Pharma Holding, you can compare the effects of market volatilities on Citigroup and Klaria Pharma 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 Klaria Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Klaria Pharma.
Diversification Opportunities for Citigroup and Klaria Pharma
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Klaria is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Klaria Pharma Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaria Pharma Holding 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 Klaria Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klaria Pharma Holding has no effect on the direction of Citigroup i.e., Citigroup and Klaria Pharma go up and down completely randomly.
Pair Corralation between Citigroup and Klaria Pharma
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.29 times more return on investment than Klaria Pharma. However, Citigroup is 3.48 times less risky than Klaria Pharma. It trades about 0.16 of its potential returns per unit of risk. Klaria Pharma Holding is currently generating about -0.17 per unit of risk. If you would invest 6,083 in Citigroup on August 25, 2024 and sell it today you would earn a total of 901.00 from holding Citigroup or generate 14.81% 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. Klaria Pharma Holding
Performance |
| Timeline |
| Citigroup |
| Klaria Pharma Holding |
Citigroup and Klaria Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Klaria Pharma
The main advantage of trading using opposite Citigroup and Klaria Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Klaria Pharma 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 Klaria Pharma will offset losses from the drop in Klaria Pharma's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Klaria Pharma vs. Stille AB | Klaria Pharma vs. Midsona AB | Klaria Pharma vs. C Rad AB | Klaria Pharma vs. Novotek 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |