Correlation Between Citigroup and Nalwa Sons

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

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

Diversification Opportunities for Citigroup and Nalwa Sons

-0.36

Correlation Coefficient

Citigroup  Nalwa Sons

Very good diversification

The 3 months correlation between Citigroup and Nalwa is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nalwa Sons Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nalwa Sons 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 Nalwa Sons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nalwa Sons Investments has no effect on the direction of Citigroup i.e., Citigroup and Nalwa Sons go up and down completely randomly.

Pair Corralation between Citigroup and Nalwa Sons

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.55 times more return on investment than Nalwa Sons. However, Citigroup is 1.82 times less risky than Nalwa Sons. It trades about 0.01 of its potential returns per unit of risk. Nalwa Sons Investments is currently generating about -0.08 per unit of risk. If you would invest  6,991  in Citigroup on December 29, 2024 and sell it today you would earn a total of  42.00  from holding Citigroup or generate 0.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Citigroup  vs.  Nalwa Sons Investments

Citigroup

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Nalwa Sons Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nalwa Sons Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Citigroup and Nalwa Sons

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

The idea behind Citigroup and Nalwa Sons 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.