Correlation Between Citigroup and Clickstream Corp

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

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

Diversification Opportunities for Citigroup and Clickstream Corp

0.0

Correlation Coefficient

Citigroup  Clickstream Corp

Pay attention - limited upside

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

Pair Corralation between Citigroup and Clickstream Corp

If you would invest  6,902  in Citigroup on September 13, 2024 and sell it today you would earn a total of  294.00  from holding Citigroup or generate 4.26% return on investment over 90 days.

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

Citigroup  vs.  Clickstream Corp

Citigroup

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 15 (%) 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.

Clickstream Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Clickstream Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, Clickstream Corp is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Citigroup and Clickstream Corp

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

The idea behind Citigroup and Clickstream 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.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.