Correlation Between Citigroup and Calissio Resources

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

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

Diversification Opportunities for Citigroup and Calissio Resources

-0.56

Correlation Coefficient

Citigroup  Calissio Resources

Excellent diversification

The 3 months correlation between Citigroup and Calissio is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Calissio Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calissio Resources 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 Calissio Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calissio Resources has no effect on the direction of Citigroup i.e., Citigroup and Calissio Resources go up and down completely randomly.

Pair Corralation between Citigroup and Calissio Resources

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.22 times more return on investment than Calissio Resources. However, Citigroup is 4.62 times less risky than Calissio Resources. It trades about 0.13 of its potential returns per unit of risk. Calissio Resources Group is currently generating about -0.07 per unit of risk. If you would invest  6,092  in Citigroup on September 3, 2024 and sell it today you would earn a total of  995.00  from holding Citigroup or generate 16.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Citigroup  vs.  Calissio Resources Group

Citigroup

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 10 (%) 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.

Calissio Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calissio Resources Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Citigroup and Calissio Resources

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

The idea behind Citigroup and Calissio Resources Group 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.