Correlation Between Citigroup and BankInvest Globale

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

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

Diversification Opportunities for Citigroup and BankInvest Globale

0.0

Correlation Coefficient

Citigroup  BankInvest Globale

Pay attention - limited upside

The 3 months correlation between Citigroup and BankInvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BankInvest Globale Obl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Globale Obl 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 BankInvest Globale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Globale Obl has no effect on the direction of Citigroup i.e., Citigroup and BankInvest Globale go up and down completely randomly.

Pair Corralation between Citigroup and BankInvest Globale

If you would invest  7,086  in Citigroup on December 26, 2024 and sell it today you would earn a total of  361.00  from holding Citigroup or generate 5.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Citigroup  vs.  BankInvest Globale Obl

Citigroup

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 4 (%) 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.

BankInvest Globale Obl

Risk-Adjusted Performance

Very Weak

Over the last 90 days BankInvest Globale Obl has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BankInvest Globale is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and BankInvest Globale

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

The idea behind Citigroup and BankInvest Globale Obl 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.