Correlation Between Citigroup and Pluralsight

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

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

Diversification Opportunities for Citigroup and Pluralsight

0.0

Correlation Coefficient

Citigroup  Pluralsight

Pay attention - limited upside

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

Pair Corralation between Citigroup and Pluralsight

If you would invest  7,143  in Citigroup on October 13, 2024 and sell it today you would lose (3.00) from holding Citigroup or give up 0.04% of portfolio value over 90 days.

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

Citigroup  vs.  Pluralsight

Citigroup

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pluralsight

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pluralsight has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Pluralsight is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Citigroup and Pluralsight

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

The idea behind Citigroup and Pluralsight 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.