Correlation Between Citigroup and 1ST QUANTUM

Can any of the company-specific risk be diversified away by investing in both Citigroup and 1ST QUANTUM 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 1ST QUANTUM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and 1ST QUANTUM MINLS, you can compare the effects of market volatilities on Citigroup and 1ST QUANTUM 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 1ST QUANTUM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 1ST QUANTUM.

Diversification Opportunities for Citigroup and 1ST QUANTUM

0.0

Correlation Coefficient

Citigroup  1ST QUANTUM

Pay attention - limited upside

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

Pair Corralation between Citigroup and 1ST QUANTUM

If you would invest  4,219  in Citigroup on September 21, 2024 and sell it today you would earn a total of  2,623  from holding Citigroup or generate 62.17% return on investment over 90 days.

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

Citigroup  vs.  1ST QUANTUM MINLS

Citigroup

Risk-Adjusted Performance

7 of 100

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 January 2025.

1ST QUANTUM MINLS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 1ST QUANTUM MINLS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 1ST QUANTUM is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and 1ST QUANTUM

The main advantage of trading using opposite Citigroup and 1ST QUANTUM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 1ST QUANTUM 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 1ST QUANTUM will offset losses from the drop in 1ST QUANTUM's long position.

The idea behind Citigroup and 1ST QUANTUM MINLS 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.