Correlation Between SCIENCE IN and Citigroup

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

By analyzing existing cross correlation between SCIENCE IN SPORT and Citigroup, you can compare the effects of market volatilities on SCIENCE IN and Citigroup 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 SCIENCE IN with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCIENCE IN and Citigroup.

Diversification Opportunities for SCIENCE IN and Citigroup

-0.28

Correlation Coefficient

SCIENCE IN  Citigroup

Very good diversification

The 3 months correlation between SCIENCE and Citigroup is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SCIENCE IN SPORT and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and SCIENCE IN 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 SCIENCE IN SPORT are associated (or correlated) with Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of SCIENCE IN i.e., SCIENCE IN and Citigroup go up and down completely randomly.

Pair Corralation between SCIENCE IN and Citigroup

Assuming the 90 days horizon SCIENCE IN SPORT is expected to generate 0.94 times more return on investment than Citigroup. However, SCIENCE IN SPORT is 1.06 times less risky than Citigroup. It trades about 0.08 of its potential returns per unit of risk. Citigroup is currently generating about 0.0 per unit of risk. If you would invest  29.00  in SCIENCE IN SPORT on December 24, 2024 and sell it today you would earn a total of  3.00  from holding SCIENCE IN SPORT or generate 10.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SCIENCE IN SPORT  vs.  Citigroup

SCIENCE IN SPORT

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SCIENCE IN SPORT are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SCIENCE IN may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Citigroup

Risk-Adjusted Performance

Very Weak

Over the last 90 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SCIENCE IN and Citigroup

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

The idea behind SCIENCE IN SPORT and Citigroup 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.