Correlation Between Citigroup and Instadose Pharma

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

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

Diversification Opportunities for Citigroup and Instadose Pharma

0.0

Correlation Coefficient

Citigroup  Instadose Pharma

Pay attention - limited upside

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

Pair Corralation between Citigroup and Instadose Pharma

If you would invest  6,092  in Citigroup on September 3, 2024 and sell it today you would earn a total of  1,047  from holding Citigroup or generate 17.19% return on investment over 90 days.

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

Citigroup  vs.  Instadose Pharma Corp

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.

Instadose Pharma Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Instadose Pharma Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Instadose Pharma is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Citigroup and Instadose Pharma

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

The idea behind Citigroup and Instadose Pharma 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.