Correlation Between Citigroup and JVC Kenwood

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

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

Diversification Opportunities for Citigroup and JVC Kenwood

-0.29

Correlation Coefficient

Citigroup  JVC Kenwood

Very good diversification

The 3 months correlation between Citigroup and JVC is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and JVC Kenwood Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JVC Kenwood Corp 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 JVC Kenwood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JVC Kenwood Corp has no effect on the direction of Citigroup i.e., Citigroup and JVC Kenwood go up and down completely randomly.

Pair Corralation between Citigroup and JVC Kenwood

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.37 times more return on investment than JVC Kenwood. However, Citigroup is 2.73 times less risky than JVC Kenwood. It trades about 0.09 of its potential returns per unit of risk. JVC Kenwood Corp is currently generating about -0.22 per unit of risk. If you would invest  9,747  in Citigroup on September 5, 2025 and sell it today you would earn a total of  572.00  from holding Citigroup or generate 5.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.67%
Values	Daily Returns

Citigroup  vs.  JVC Kenwood Corp

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2026.

JVC Kenwood Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days JVC Kenwood Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Citigroup and JVC Kenwood

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

The idea behind Citigroup and JVC Kenwood Corp 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.