Correlation Between Citigroup and Kronos Worldwide
Can any of the company-specific risk be diversified away by investing in both Citigroup and Kronos Worldwide 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 Kronos Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Kronos Worldwide, you can compare the effects of market volatilities on Citigroup and Kronos Worldwide 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 Kronos Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Kronos Worldwide.
Diversification Opportunities for Citigroup and Kronos Worldwide
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Kronos is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Kronos Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kronos Worldwide 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 Kronos Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kronos Worldwide has no effect on the direction of Citigroup i.e., Citigroup and Kronos Worldwide go up and down completely randomly.
Pair Corralation between Citigroup and Kronos Worldwide
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.51 times more return on investment than Kronos Worldwide. However, Citigroup is 1.97 times less risky than Kronos Worldwide. It trades about 0.11 of its potential returns per unit of risk. Kronos Worldwide is currently generating about -0.09 per unit of risk. If you would invest 9,422 in Citigroup on September 1, 2025 and sell it today you would earn a total of 938.00 from holding Citigroup or generate 9.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Kronos Worldwide
Performance |
| Timeline |
| Citigroup |
| Kronos Worldwide |
Citigroup and Kronos Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Kronos Worldwide
The main advantage of trading using opposite Citigroup and Kronos Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Kronos Worldwide 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 Kronos Worldwide will offset losses from the drop in Kronos Worldwide's long position.| Citigroup vs. Fernhill Beverage | Citigroup vs. Commercial Vehicle Group | Citigroup vs. Tencent Music Entertainment | Citigroup vs. CarsalesCom Ltd ADR |
| Kronos Worldwide vs. China Petroleum Chemical | Kronos Worldwide vs. Gaztransport Technigaz SA | Kronos Worldwide vs. PTT Global Chemical | Kronos Worldwide vs. ANTA Sports Products |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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