Correlation Between Citigroup and Kelly Strategic
Can any of the company-specific risk be diversified away by investing in both Citigroup and Kelly Strategic 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 Kelly Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Kelly Strategic Management, you can compare the effects of market volatilities on Citigroup and Kelly Strategic 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 Kelly Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kelly Strategic.
Diversification Opportunities for Citigroup and Kelly Strategic
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Kelly is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kelly Strategic Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Strategic Mana 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 Kelly Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Strategic Mana has no effect on the direction of Citigroup i.e., Citigroup and Kelly Strategic go up and down completely randomly.
Pair Corralation between Citigroup and Kelly Strategic
If you would invest 6,235 in Citigroup on September 4, 2024 and sell it today you would earn a total of 904.00 from holding Citigroup or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citigroup vs. Kelly Strategic Management
Performance |
| Timeline |
| Citigroup |
| Kelly Strategic Mana |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Kelly Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kelly Strategic
The main advantage of trading using opposite Citigroup and Kelly Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kelly Strategic 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 Kelly Strategic will offset losses from the drop in Kelly Strategic's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Kelly Strategic vs. Vanguard Consumer Staples | Kelly Strategic vs. Vanguard Financials Index | Kelly Strategic vs. Vanguard Information Technology | Kelly Strategic vs. Vanguard Consumer Discretionary |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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