Correlation Between Citigroup and 1125 PB

Can any of the company-specific risk be diversified away by investing in both Citigroup and 1125 PB 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 1125 PB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and 1125 PB 21, you can compare the effects of market volatilities on Citigroup and 1125 PB 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 1125 PB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 1125 PB.

Diversification Opportunities for Citigroup and 1125 PB

0.0

Correlation Coefficient

Citigroup  1125 PB

Pay attention - limited upside

The 3 months correlation between Citigroup and 1125 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and 1125 PB 21 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1125 PB 21 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 1125 PB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1125 PB 21 has no effect on the direction of Citigroup i.e., Citigroup and 1125 PB go up and down completely randomly.

Pair Corralation between Citigroup and 1125 PB

If you would invest  5,305  in Citigroup on October 2, 2024 and sell it today you would earn a total of  1,734  from holding Citigroup or generate 32.69% return on investment over 90 days.

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

Citigroup  vs.  1125 PB 21

Citigroup

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

1125 PB 21

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 1125 PB 21 has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, 1125 PB is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and 1125 PB

The main advantage of trading using opposite Citigroup and 1125 PB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 1125 PB 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 1125 PB will offset losses from the drop in 1125 PB's long position.

The idea behind Citigroup and 1125 PB 21 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.