Correlation Between Citigroup and United Robotics

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

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

Diversification Opportunities for Citigroup and United Robotics

0.15

Correlation Coefficient

Citigroup  United Robotics

Average diversification

The 3 months correlation between Citigroup and United is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and United Robotics Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Robotics Arti 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 United Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Robotics Arti has no effect on the direction of Citigroup i.e., Citigroup and United Robotics go up and down completely randomly.

Pair Corralation between Citigroup and United Robotics

Taking into account the 90-day investment horizon Citigroup is expected to generate 142.41 times less return on investment than United Robotics. But when comparing it to its historical volatility, Citigroup is 101.01 times less risky than United Robotics. It trades about 0.12 of its potential returns per unit of risk. United Robotics Artificial is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,360  in United Robotics Artificial on October 8, 2024 and sell it today you would earn a total of  20.00  from holding United Robotics Artificial or generate 1.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Citigroup  vs.  United Robotics Artificial

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 unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

United Robotics Arti

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in United Robotics Artificial are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, United Robotics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and United Robotics

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

The idea behind Citigroup and United Robotics Artificial 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.