Correlation Between Citigroup and Bellevue Group

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

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

Diversification Opportunities for Citigroup and Bellevue Group

-0.85

Correlation Coefficient

Citigroup  Bellevue Group

Pay attention - limited upside

The 3 months correlation between Citigroup and Bellevue is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Bellevue Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Group AG 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 Bellevue Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Group AG has no effect on the direction of Citigroup i.e., Citigroup and Bellevue Group go up and down completely randomly.

Pair Corralation between Citigroup and Bellevue Group

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.46 times more return on investment than Bellevue Group. However, Citigroup is 1.46 times more volatile than Bellevue Group AG. It trades about 0.15 of its potential returns per unit of risk. Bellevue Group AG is currently generating about -0.42 per unit of risk. If you would invest  6,205  in Citigroup on August 30, 2024 and sell it today you would earn a total of  811.00  from holding Citigroup or generate 13.07% return on investment over 90 days.

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

Citigroup  vs.  Bellevue Group AG

Citigroup

Risk-Adjusted Performance

8 of 100

OK

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 exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bellevue Group AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bellevue Group AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Citigroup and Bellevue Group

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

The idea behind Citigroup and Bellevue Group AG 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.