Correlation Between Citigroup and KSM Mutual
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By analyzing existing cross correlation between Citigroup and KSM Mutual Funds, you can compare the effects of market volatilities on Citigroup and KSM Mutual 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 KSM Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and KSM Mutual.
Diversification Opportunities for Citigroup and KSM Mutual
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and KSM is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and KSM Mutual Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSM Mutual Funds 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 KSM Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSM Mutual Funds has no effect on the direction of Citigroup i.e., Citigroup and KSM Mutual go up and down completely randomly.
Pair Corralation between Citigroup and KSM Mutual
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.88 times more return on investment than KSM Mutual. However, Citigroup is 2.88 times more volatile than KSM Mutual Funds. It trades about 0.21 of its potential returns per unit of risk. KSM Mutual Funds is currently generating about 0.01 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.26% |
| Values | Daily Returns |
Citigroup vs. KSM Mutual Funds
Performance |
| Timeline |
| Citigroup |
| KSM Mutual Funds |
Citigroup and KSM Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and KSM Mutual
The main advantage of trading using opposite Citigroup and KSM Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, KSM Mutual 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 KSM Mutual will offset losses from the drop in KSM Mutual's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual Funds |
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.
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