Correlation Between Citigroup and KULR Technology
Can any of the company-specific risk be diversified away by investing in both Citigroup and KULR Technology 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 KULR Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and KULR Technology Group, you can compare the effects of market volatilities on Citigroup and KULR Technology 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 KULR Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and KULR Technology.
Diversification Opportunities for Citigroup and KULR Technology
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and KULR is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and KULR Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KULR Technology Group 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 KULR Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KULR Technology Group has no effect on the direction of Citigroup i.e., Citigroup and KULR Technology go up and down completely randomly.
Pair Corralation between Citigroup and KULR Technology
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.89 times less return on investment than KULR Technology. But when comparing it to its historical volatility, Citigroup is 5.92 times less risky than KULR Technology. It trades about 0.09 of its potential returns per unit of risk. KULR Technology Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 15.00 in KULR Technology Group on August 27, 2024 and sell it today you would earn a total of 30.00 from holding KULR Technology Group or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. KULR Technology Group
Performance |
| Timeline |
| Citigroup |
| KULR Technology Group |
Citigroup and KULR Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and KULR Technology
The main advantage of trading using opposite Citigroup and KULR Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, KULR Technology 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 KULR Technology will offset losses from the drop in KULR Technology's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| KULR Technology vs. Richardson Electronics | KULR Technology vs. Interlink Electronics | KULR Technology vs. SigmaTron International | KULR Technology vs. Maris Tech |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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