Correlation Between Citigroup and Data Knights
Can any of the company-specific risk be diversified away by investing in both Citigroup and Data Knights 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 Data Knights into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Data Knights Acquisition, you can compare the effects of market volatilities on Citigroup and Data Knights 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 Data Knights. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Data Knights.
Diversification Opportunities for Citigroup and Data Knights
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Data is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Data Knights Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Knights Acquisition 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 Data Knights. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Knights Acquisition has no effect on the direction of Citigroup i.e., Citigroup and Data Knights go up and down completely randomly.
Pair Corralation between Citigroup and Data Knights
If you would invest 4,142 in Citigroup on December 4, 2024 and sell it today you would earn a total of 3,575 from holding Citigroup or generate 86.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Citigroup vs. Data Knights Acquisition
Performance |
Timeline |
Citigroup |
Data Knights Acquisition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and Data Knights Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Data Knights
The main advantage of trading using opposite Citigroup and Data Knights positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Data Knights 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 Data Knights will offset losses from the drop in Data Knights' long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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