Correlation Between Citigroup and Satyamitra Kemas
Can any of the company-specific risk be diversified away by investing in both Citigroup and Satyamitra Kemas 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 Satyamitra Kemas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Satyamitra Kemas Lestari, you can compare the effects of market volatilities on Citigroup and Satyamitra Kemas 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 Satyamitra Kemas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Satyamitra Kemas.
Diversification Opportunities for Citigroup and Satyamitra Kemas
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Satyamitra is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Satyamitra Kemas Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satyamitra Kemas Lestari 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 Satyamitra Kemas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satyamitra Kemas Lestari has no effect on the direction of Citigroup i.e., Citigroup and Satyamitra Kemas go up and down completely randomly.
Pair Corralation between Citigroup and Satyamitra Kemas
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.01 times more return on investment than Satyamitra Kemas. However, Citigroup is 1.01 times more volatile than Satyamitra Kemas Lestari. It trades about 0.4 of its potential returns per unit of risk. Satyamitra Kemas Lestari is currently generating about 0.1 per unit of risk. If you would invest 6,977 in Citigroup on October 22, 2024 and sell it today you would earn a total of 1,022 from holding Citigroup or generate 14.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Citigroup vs. Satyamitra Kemas Lestari
Performance |
| Timeline |
| Citigroup |
| Satyamitra Kemas Lestari |
Citigroup and Satyamitra Kemas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Satyamitra Kemas
The main advantage of trading using opposite Citigroup and Satyamitra Kemas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Satyamitra Kemas 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 Satyamitra Kemas will offset losses from the drop in Satyamitra Kemas' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Satyamitra Kemas vs. Saraswanti Anugerah Makmur | Satyamitra Kemas vs. Panca Budi Idaman | Satyamitra Kemas vs. Indonesia Fibreboard Industry | Satyamitra Kemas vs. Kencana Energi Lestari |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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