Correlation Between Citigroup and KODEX 200LONGKOSDAQ150

Can any of the company-specific risk be diversified away by investing in both Citigroup and KODEX 200LONGKOSDAQ150 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 KODEX 200LONGKOSDAQ150 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and KODEX 200LONGKOSDAQ150SHORT Futures, you can compare the effects of market volatilities on Citigroup and KODEX 200LONGKOSDAQ150 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 KODEX 200LONGKOSDAQ150. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and KODEX 200LONGKOSDAQ150.

Diversification Opportunities for Citigroup and KODEX 200LONGKOSDAQ150

0.5

Correlation Coefficient

Citigroup  KODEX 200LONGKOSDAQ150

Very weak diversification

The 3 months correlation between Citigroup and KODEX is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and KODEX 200LONGKOSDAQ150SHORT Fu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KODEX 200LONGKOSDAQ150 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 KODEX 200LONGKOSDAQ150. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KODEX 200LONGKOSDAQ150 has no effect on the direction of Citigroup i.e., Citigroup and KODEX 200LONGKOSDAQ150 go up and down completely randomly.

Pair Corralation between Citigroup and KODEX 200LONGKOSDAQ150

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.86 times more return on investment than KODEX 200LONGKOSDAQ150. However, Citigroup is 1.86 times more volatile than KODEX 200LONGKOSDAQ150SHORT Futures. It trades about 0.01 of its potential returns per unit of risk. KODEX 200LONGKOSDAQ150SHORT Futures is currently generating about -0.07 per unit of risk. If you would invest  7,143  in Citigroup on October 13, 2024 and sell it today you would lose (3.00) from holding Citigroup or give up 0.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.0%
Values	Daily Returns

Citigroup  vs.  KODEX 200LONGKOSDAQ150SHORT Fu

Citigroup

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in February 2025.

KODEX 200LONGKOSDAQ150

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KODEX 200LONGKOSDAQ150SHORT Futures are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, KODEX 200LONGKOSDAQ150 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and KODEX 200LONGKOSDAQ150

The main advantage of trading using opposite Citigroup and KODEX 200LONGKOSDAQ150 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, KODEX 200LONGKOSDAQ150 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 KODEX 200LONGKOSDAQ150 will offset losses from the drop in KODEX 200LONGKOSDAQ150's long position.

The idea behind Citigroup and KODEX 200LONGKOSDAQ150SHORT Futures pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to 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.