Correlation Between Citigroup and TKS Technologies
Can any of the company-specific risk be diversified away by investing in both Citigroup and TKS Technologies 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 TKS Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and TKS Technologies Public, you can compare the effects of market volatilities on Citigroup and TKS Technologies 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 TKS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and TKS Technologies.
Diversification Opportunities for Citigroup and TKS Technologies
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and TKS is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and TKS Technologies Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TKS Technologies Public 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 TKS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TKS Technologies Public has no effect on the direction of Citigroup i.e., Citigroup and TKS Technologies go up and down completely randomly.
Pair Corralation between Citigroup and TKS Technologies
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.74 times more return on investment than TKS Technologies. However, Citigroup is 1.74 times more volatile than TKS Technologies Public. It trades about 0.38 of its potential returns per unit of risk. TKS Technologies Public is currently generating about -0.37 per unit of risk. If you would invest 7,100 in Citigroup on November 4, 2024 and sell it today you would earn a total of 1,043 from holding Citigroup or generate 14.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. TKS Technologies Public
Performance |
| Timeline |
| Citigroup |
| TKS Technologies Public |
Citigroup and TKS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and TKS Technologies
The main advantage of trading using opposite Citigroup and TKS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, TKS Technologies 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 TKS Technologies will offset losses from the drop in TKS Technologies' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| TKS Technologies vs. Synnex Public | TKS Technologies vs. SiS Distribution Public | TKS Technologies vs. Thoresen Thai Agencies | TKS Technologies vs. SVI Public |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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