Correlation Between Citigroup and KTAM SET50

Can any of the company-specific risk be diversified away by investing in both Citigroup and KTAM SET50 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 SET50 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and KTAM SET50 ETF, you can compare the effects of market volatilities on Citigroup and KTAM SET50 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 SET50. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and KTAM SET50.

Diversification Opportunities for Citigroup and KTAM SET50

0.0

Correlation Coefficient

Citigroup  KTAM SET50

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 SET50 ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTAM SET50 ETF 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 SET50. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTAM SET50 ETF has no effect on the direction of Citigroup i.e., Citigroup and KTAM SET50 go up and down completely randomly.

Pair Corralation between Citigroup and KTAM SET50

If you would invest (100.00) in KTAM SET50 ETF on October 8, 2024 and sell it today you would earn a total of  100.00  from holding KTAM SET50 ETF or generate -100.0% return on investment over 90 days.

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

Citigroup  vs.  KTAM SET50 ETF

Citigroup

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) 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 SET50 ETF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KTAM SET50 ETF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, KTAM SET50 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and KTAM SET50

The main advantage of trading using opposite Citigroup and KTAM SET50 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, KTAM SET50 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 SET50 will offset losses from the drop in KTAM SET50's long position.

The idea behind Citigroup and KTAM SET50 ETF 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.