Correlation Between Citigroup and AGF Investments

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

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

Diversification Opportunities for Citigroup and AGF Investments

0.0

Correlation Coefficient

Citigroup  AGF Investments

Pay attention - limited upside

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

Pair Corralation between Citigroup and AGF Investments

If you would invest  5,549  in Citigroup on December 4, 2024 and sell it today you would earn a total of  2,168  from holding Citigroup or generate 39.07% return on investment over 90 days.

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

Citigroup  vs.  AGF Investments

Citigroup

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) 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.

AGF Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGF Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, AGF Investments 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 AGF Investments

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

The idea behind Citigroup and AGF Investments 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.