Correlation Between Citigroup and KINDER
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By analyzing existing cross correlation between Citigroup and KINDER MORGAN ENERGY, you can compare the effects of market volatilities on Citigroup and KINDER 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 KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and KINDER.
Diversification Opportunities for Citigroup and KINDER
Very good diversification
The 3 months correlation between Citigroup and KINDER is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and KINDER MORGAN ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN ENERGY 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN ENERGY has no effect on the direction of Citigroup i.e., Citigroup and KINDER go up and down completely randomly.
Pair Corralation between Citigroup and KINDER
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.32 times more return on investment than KINDER. However, Citigroup is 2.32 times more volatile than KINDER MORGAN ENERGY. It trades about 0.14 of its potential returns per unit of risk. KINDER MORGAN ENERGY is currently generating about 0.02 per unit of risk. If you would invest 6,255 in Citigroup on September 23, 2024 and sell it today you would earn a total of 664.00 from holding Citigroup or generate 10.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 97.67% |
Values | Daily Returns |
Citigroup vs. KINDER MORGAN ENERGY
Performance |
Timeline |
Citigroup |
KINDER MORGAN ENERGY |
Citigroup and KINDER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and KINDER
The main advantage of trading using opposite Citigroup and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER's long position.Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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