Correlation Between Citigroup and 023772AB2

Can any of the company-specific risk be diversified away by investing in both Citigroup and 023772AB2 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 023772AB2 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and AAL 4 15 JUL 25, you can compare the effects of market volatilities on Citigroup and 023772AB2 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 023772AB2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 023772AB2.

Diversification Opportunities for Citigroup and 023772AB2

0.53

Correlation Coefficient

Citigroup  023772AB2

Very weak diversification

The 3 months correlation between Citigroup and 023772AB2 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AAL 4 15 JUL 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 023772AB2 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 023772AB2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 023772AB2 has no effect on the direction of Citigroup i.e., Citigroup and 023772AB2 go up and down completely randomly.

Pair Corralation between Citigroup and 023772AB2

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.72 times more return on investment than 023772AB2. However, Citigroup is 1.4 times less risky than 023772AB2. It trades about 0.07 of its potential returns per unit of risk. AAL 4 15 JUL 25 is currently generating about 0.04 per unit of risk. If you would invest  4,381  in Citigroup on August 31, 2024 and sell it today you would earn a total of  2,706  from holding Citigroup or generate 61.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	30.96%
Values	Daily Returns

Citigroup  vs.  AAL 4 15 JUL 25

Citigroup

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 10 (%) 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.

023772AB2

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AAL 4 15 JUL 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 023772AB2 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and 023772AB2

The main advantage of trading using opposite Citigroup and 023772AB2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 023772AB2 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 023772AB2 will offset losses from the drop in 023772AB2's long position.

The idea behind Citigroup and AAL 4 15 JUL 25 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.