Correlation Between Citigroup and Kentucky Tax-free
Can any of the company-specific risk be diversified away by investing in both Citigroup and Kentucky Tax-free 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 Kentucky Tax-free into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Kentucky Tax Free Income, you can compare the effects of market volatilities on Citigroup and Kentucky Tax-free 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 Kentucky Tax-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kentucky Tax-free.
Diversification Opportunities for Citigroup and Kentucky Tax-free
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Kentucky is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kentucky Tax Free Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kentucky Tax Free 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 Kentucky Tax-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kentucky Tax Free has no effect on the direction of Citigroup i.e., Citigroup and Kentucky Tax-free go up and down completely randomly.
Pair Corralation between Citigroup and Kentucky Tax-free
Taking into account the 90-day investment horizon Citigroup is expected to generate 7.31 times more return on investment than Kentucky Tax-free. However, Citigroup is 7.31 times more volatile than Kentucky Tax Free Income. It trades about 0.26 of its potential returns per unit of risk. Kentucky Tax Free Income is currently generating about 0.23 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Kentucky Tax Free Income
Performance |
| Timeline |
| Citigroup |
| Kentucky Tax Free |
Citigroup and Kentucky Tax-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kentucky Tax-free
The main advantage of trading using opposite Citigroup and Kentucky Tax-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kentucky Tax-free 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 Kentucky Tax-free will offset losses from the drop in Kentucky Tax-free's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Kentucky Tax-free vs. North Carolina Tax Free | Kentucky Tax-free vs. Kentucky Tax Free Short To Medium | Kentucky Tax-free vs. North Carolina Tax Free | Kentucky Tax-free vs. Intermediate Government Bond |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |