Correlation Between Citigroup and 36Kr Holdings
Can any of the company-specific risk be diversified away by investing in both Citigroup and 36Kr Holdings 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 36Kr Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and 36Kr Holdings, you can compare the effects of market volatilities on Citigroup and 36Kr Holdings 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 36Kr Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 36Kr Holdings.
Diversification Opportunities for Citigroup and 36Kr Holdings
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and 36Kr is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and 36Kr Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 36Kr Holdings 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 36Kr Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 36Kr Holdings has no effect on the direction of Citigroup i.e., Citigroup and 36Kr Holdings go up and down completely randomly.
Pair Corralation between Citigroup and 36Kr Holdings
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.52 times more return on investment than 36Kr Holdings. However, Citigroup is 1.92 times less risky than 36Kr Holdings. It trades about 0.2 of its potential returns per unit of risk. 36Kr Holdings is currently generating about -0.33 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. 36Kr Holdings
Performance |
| Timeline |
| Citigroup |
| 36Kr Holdings |
Citigroup and 36Kr Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 36Kr Holdings
The main advantage of trading using opposite Citigroup and 36Kr Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 36Kr Holdings 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 36Kr Holdings will offset losses from the drop in 36Kr Holdings' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 36Kr Holdings vs. Alphabet Inc Class C | 36Kr Holdings vs. Twilio Inc | 36Kr Holdings vs. Snap Inc | 36Kr Holdings vs. Baidu Inc |
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.
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