Correlation Between Citigroup and Kinea Rendimentos
Can any of the company-specific risk be diversified away by investing in both Citigroup and Kinea Rendimentos 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 Rendimentos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Kinea Rendimentos Imobilirios, you can compare the effects of market volatilities on Citigroup and Kinea Rendimentos 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 Rendimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kinea Rendimentos.
Diversification Opportunities for Citigroup and Kinea Rendimentos
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Kinea is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kinea Rendimentos Imobilirios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinea Rendimentos 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 Rendimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinea Rendimentos has no effect on the direction of Citigroup i.e., Citigroup and Kinea Rendimentos go up and down completely randomly.
Pair Corralation between Citigroup and Kinea Rendimentos
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.17 times more return on investment than Kinea Rendimentos. However, Citigroup is 3.17 times more volatile than Kinea Rendimentos Imobilirios. It trades about 0.08 of its potential returns per unit of risk. Kinea Rendimentos Imobilirios is currently generating about 0.08 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 Rendimentos Imobilirios
Performance |
| Timeline |
| Citigroup |
| Kinea Rendimentos |
Citigroup and Kinea Rendimentos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kinea Rendimentos
The main advantage of trading using opposite Citigroup and Kinea Rendimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kinea Rendimentos 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 Rendimentos will offset losses from the drop in Kinea Rendimentos' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Kinea Rendimentos vs. Fundos de Investimento | Kinea Rendimentos vs. Brio Multiestrategi Fundo | Kinea Rendimentos vs. TRX Renda Fundo | Kinea Rendimentos vs. HEDGE SEED 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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