Correlation Between Citigroup and Nutritional High

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

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

Diversification Opportunities for Citigroup and Nutritional High

0.0

Correlation Coefficient

Citigroup  Nutritional High

Pay attention - limited upside

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

Pair Corralation between Citigroup and Nutritional High

If you would invest  6,042  in Citigroup on September 4, 2024 and sell it today you would earn a total of  1,097  from holding Citigroup or generate 18.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Citigroup  vs.  Nutritional High International

Citigroup

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Nutritional High Int

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nutritional High International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Nutritional High is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Citigroup and Nutritional High

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

The idea behind Citigroup and Nutritional High International 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.