Correlation Between Citigroup and Kinetics Alternative
Can any of the company-specific risk be diversified away by investing in both Citigroup and Kinetics Alternative 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 Kinetics Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Kinetics Alternative Income, you can compare the effects of market volatilities on Citigroup and Kinetics Alternative 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 Kinetics Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kinetics Alternative.
Diversification Opportunities for Citigroup and Kinetics Alternative
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and KINETICS is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kinetics Alternative Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Alternative 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 Kinetics Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Alternative has no effect on the direction of Citigroup i.e., Citigroup and Kinetics Alternative go up and down completely randomly.
Pair Corralation between Citigroup and Kinetics Alternative
If you would invest 4,676 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,411 from holding Citigroup or generate 51.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Citigroup vs. Kinetics Alternative Income
Performance |
| Timeline |
| Citigroup |
| Kinetics Alternative |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Kinetics Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kinetics Alternative
The main advantage of trading using opposite Citigroup and Kinetics Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kinetics Alternative 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 Kinetics Alternative will offset losses from the drop in Kinetics Alternative's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Kinetics Alternative vs. Pace Municipal Fixed | Kinetics Alternative vs. Bbh Intermediate Municipal | Kinetics Alternative vs. Franklin High Yield | Kinetics Alternative vs. Ab Impact Municipal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |