Correlation Between Citigroup and Tremblant Global

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

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

Diversification Opportunities for Citigroup and Tremblant Global

0.91

Correlation Coefficient

Citigroup  Tremblant Global

Almost no diversification

The 3 months correlation between Citigroup and Tremblant is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tremblant Global ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tremblant Global ETF 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 Tremblant Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tremblant Global ETF has no effect on the direction of Citigroup i.e., Citigroup and Tremblant Global go up and down completely randomly.

Pair Corralation between Citigroup and Tremblant Global

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.58 times more return on investment than Tremblant Global. However, Citigroup is 1.58 times more volatile than Tremblant Global ETF. It trades about 0.01 of its potential returns per unit of risk. Tremblant Global ETF is currently generating about -0.04 per unit of risk. If you would invest  6,991  in Citigroup on December 30, 2024 and sell it today you would earn a total of  42.00  from holding Citigroup or generate 0.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Tremblant Global ETF

Citigroup

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Tremblant Global ETF

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tremblant Global ETF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Tremblant Global is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and Tremblant Global

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

The idea behind Citigroup and Tremblant Global ETF 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.