Correlation Between Citigroup and QMC Quantum

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

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

Diversification Opportunities for Citigroup and QMC Quantum

-0.46

Correlation Coefficient

Citigroup  QMC Quantum

Very good diversification

The 3 months correlation between Citigroup and QMC is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and QMC Quantum Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QMC Quantum Minerals 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 QMC Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QMC Quantum Minerals has no effect on the direction of Citigroup i.e., Citigroup and QMC Quantum go up and down completely randomly.

Pair Corralation between Citigroup and QMC Quantum

Taking into account the 90-day investment horizon Citigroup is expected to under-perform the QMC Quantum. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 5.1 times less risky than QMC Quantum. The stock trades about -0.03 of its potential returns per unit of risk. The QMC Quantum Minerals is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  5.00  in QMC Quantum Minerals on September 23, 2024 and sell it today you would earn a total of  0.50  from holding QMC Quantum Minerals or generate 10.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Citigroup  vs.  QMC Quantum Minerals

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 unsteady fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2025.

QMC Quantum Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QMC Quantum Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Citigroup and QMC Quantum

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

The idea behind Citigroup and QMC Quantum Minerals 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.