Correlation Between Citigroup and Oppnhmr Rochester

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

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

Diversification Opportunities for Citigroup and Oppnhmr Rochester

0.54

Correlation Coefficient

Citigroup  Oppnhmr Rochester

Very weak diversification

The 3 months correlation between Citigroup and Oppnhmr is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oppnhmr Rochester Arizona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppnhmr Rochester Arizona 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 Oppnhmr Rochester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppnhmr Rochester Arizona has no effect on the direction of Citigroup i.e., Citigroup and Oppnhmr Rochester go up and down completely randomly.

Pair Corralation between Citigroup and Oppnhmr Rochester

Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Oppnhmr Rochester. In addition to that, Citigroup is 4.86 times more volatile than Oppnhmr Rochester Arizona. It trades about -0.08 of its total potential returns per unit of risk. Oppnhmr Rochester Arizona is currently generating about -0.02 per unit of volatility. If you would invest  1,210  in Oppnhmr Rochester Arizona on December 3, 2024 and sell it today you would lose (2.00) from holding Oppnhmr Rochester Arizona or give up 0.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Citigroup  vs.  Oppnhmr Rochester Arizona

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.

Oppnhmr Rochester Arizona

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oppnhmr Rochester Arizona has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Oppnhmr Rochester 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 Oppnhmr Rochester

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

The idea behind Citigroup and Oppnhmr Rochester Arizona 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.