Correlation Between Citigroup and Kudelski
Can any of the company-specific risk be diversified away by investing in both Citigroup and Kudelski 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 Kudelski into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Kudelski, you can compare the effects of market volatilities on Citigroup and Kudelski 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 Kudelski. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kudelski.
Diversification Opportunities for Citigroup and Kudelski
Very good diversification
The 3 months correlation between Citigroup and Kudelski is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kudelski in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kudelski 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 Kudelski. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kudelski has no effect on the direction of Citigroup i.e., Citigroup and Kudelski go up and down completely randomly.
Pair Corralation between Citigroup and Kudelski
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.91 times more return on investment than Kudelski. However, Citigroup is 1.09 times less risky than Kudelski. It trades about 0.26 of its potential returns per unit of risk. Kudelski is currently generating about -0.2 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Citigroup vs. Kudelski
Performance |
| Timeline |
| Citigroup |
| Kudelski |
Citigroup and Kudelski Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kudelski
The main advantage of trading using opposite Citigroup and Kudelski positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kudelski 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 Kudelski will offset losses from the drop in Kudelski's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Kudelski vs. Jungfraubahn Holding AG | Kudelski vs. Amsterdam Commodities NV | Kudelski vs. Flow Traders BV | Kudelski vs. ForFarmers NV |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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