Correlation Between Citigroup and KTAM SET

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

By analyzing existing cross correlation between Citigroup and KTAM SET Commerce, you can compare the effects of market volatilities on Citigroup and KTAM SET 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 KTAM SET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and KTAM SET.

Diversification Opportunities for Citigroup and KTAM SET

0.0

Correlation Coefficient

Citigroup  KTAM SET

Pay attention - limited upside

The 3 months correlation between Citigroup and KTAM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and KTAM SET Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTAM SET Commerce 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 KTAM SET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTAM SET Commerce has no effect on the direction of Citigroup i.e., Citigroup and KTAM SET go up and down completely randomly.

Pair Corralation between Citigroup and KTAM SET

If you would invest  6,977  in Citigroup on October 24, 2024 and sell it today you would earn a total of  1,192  from holding Citigroup or generate 17.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Citigroup  vs.  KTAM SET Commerce

Citigroup

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

KTAM SET Commerce

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KTAM SET Commerce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, KTAM SET is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and KTAM SET

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

The idea behind Citigroup and KTAM SET Commerce 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.