Correlation Between Citigroup and Al Khair
Can any of the company-specific risk be diversified away by investing in both Citigroup and Al Khair 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 Al Khair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Al Khair River, you can compare the effects of market volatilities on Citigroup and Al Khair 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 Al Khair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Al Khair.
Diversification Opportunities for Citigroup and Al Khair
Modest diversification
The 3 months correlation between Citigroup and KRDI is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Al Khair River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Khair River 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 Al Khair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Khair River has no effect on the direction of Citigroup i.e., Citigroup and Al Khair go up and down completely randomly.
Pair Corralation between Citigroup and Al Khair
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.83 times more return on investment than Al Khair. However, Citigroup is 1.2 times less risky than Al Khair. It trades about 0.13 of its potential returns per unit of risk. Al Khair River is currently generating about 0.01 per unit of risk. If you would invest 6,092 in Citigroup on September 2, 2024 and sell it today you would earn a total of 995.00 from holding Citigroup or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 82.81% |
| Values | Daily Returns |
Citigroup vs. Al Khair River
Performance |
| Timeline |
| Citigroup |
| Al Khair River |
Citigroup and Al Khair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Al Khair
The main advantage of trading using opposite Citigroup and Al Khair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Al Khair 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 Al Khair will offset losses from the drop in Al Khair's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Al Khair vs. Egyptians For Investment | Al Khair vs. Misr Oils Soap | Al Khair vs. Global Telecom Holding | Al Khair vs. Qatar Natl Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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