Correlation Between Citigroup and Bathurst Metals

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

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

Diversification Opportunities for Citigroup and Bathurst Metals

0.0

Correlation Coefficient

Citigroup  Bathurst Metals

Pay attention - limited upside

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

Pair Corralation between Citigroup and Bathurst Metals

If you would invest  6,929  in Citigroup on December 21, 2024 and sell it today you would earn a total of  253.00  from holding Citigroup or generate 3.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Citigroup  vs.  Bathurst Metals Corp

Citigroup

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Bathurst Metals Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bathurst Metals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bathurst Metals is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Citigroup and Bathurst Metals

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

The idea behind Citigroup and Bathurst Metals 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.