Correlation Between Citigroup and Akash Network

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

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

Diversification Opportunities for Citigroup and Akash Network

-0.79

Correlation Coefficient

Citigroup  Akash Network

Pay attention - limited upside

The 3 months correlation between Citigroup and Akash is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Akash Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akash Network 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 Akash Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akash Network has no effect on the direction of Citigroup i.e., Citigroup and Akash Network go up and down completely randomly.

Pair Corralation between Citigroup and Akash Network

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.43 times more return on investment than Akash Network. However, Citigroup is 2.31 times less risky than Akash Network. It trades about -0.2 of its potential returns per unit of risk. Akash Network is currently generating about -0.33 per unit of risk. If you would invest  7,961  in Citigroup on December 4, 2024 and sell it today you would lose (764.50) from holding Citigroup or give up 9.6% of portfolio value over 90 days.

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

Citigroup  vs.  Akash Network

Citigroup

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) 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 April 2025.

Akash Network

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akash Network has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Akash Network shareholders.

Pair Trading with Citigroup and Akash Network

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

The idea behind Citigroup and Akash Network 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.