Correlation Between Citigroup and SNB KASSAZINSSA

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

By analyzing existing cross correlation between Citigroup and SNB KASSAZINSSA 10J, you can compare the effects of market volatilities on Citigroup and SNB KASSAZINSSA 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 SNB KASSAZINSSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and SNB KASSAZINSSA.

Diversification Opportunities for Citigroup and SNB KASSAZINSSA

0.0

Correlation Coefficient

Citigroup  SNB KASSAZINSSA

Pay attention - limited upside

The 3 months correlation between Citigroup and SNB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and SNB KASSAZINSSA 10J in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNB KASSAZINSSA 10J 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 SNB KASSAZINSSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNB KASSAZINSSA 10J has no effect on the direction of Citigroup i.e., Citigroup and SNB KASSAZINSSA go up and down completely randomly.

Pair Corralation between Citigroup and SNB KASSAZINSSA

If you would invest  4,381  in Citigroup on September 28, 2024 and sell it today you would earn a total of  2,694  from holding Citigroup or generate 61.5% return on investment over 90 days.

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

Citigroup  vs.  SNB KASSAZINSSA 10J

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.

SNB KASSAZINSSA 10J

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SNB KASSAZINSSA 10J has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward-looking signals, SNB KASSAZINSSA is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and SNB KASSAZINSSA

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

The idea behind Citigroup and SNB KASSAZINSSA 10J 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.