Correlation Between Citigroup and Vaxtex Cotfab

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

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

Diversification Opportunities for Citigroup and Vaxtex Cotfab

-0.32

Correlation Coefficient

Citigroup  Vaxtex Cotfab

Very good diversification

The 3 months correlation between Citigroup and Vaxtex is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Vaxtex Cotfab Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxtex Cotfab Limited 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 Vaxtex Cotfab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxtex Cotfab Limited has no effect on the direction of Citigroup i.e., Citigroup and Vaxtex Cotfab go up and down completely randomly.

Pair Corralation between Citigroup and Vaxtex Cotfab

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.83 times more return on investment than Vaxtex Cotfab. However, Citigroup is 1.21 times less risky than Vaxtex Cotfab. It trades about 0.04 of its potential returns per unit of risk. Vaxtex Cotfab Limited is currently generating about -0.13 per unit of risk. If you would invest  6,929  in Citigroup on December 22, 2024 and sell it today you would earn a total of  269.00  from holding Citigroup or generate 3.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Citigroup  vs.  Vaxtex Cotfab Limited

Citigroup

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 3 (%) 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 recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Vaxtex Cotfab Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vaxtex Cotfab Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Citigroup and Vaxtex Cotfab

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

The idea behind Citigroup and Vaxtex Cotfab Limited 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 CEOs Directory module to screen CEOs from public companies around the world.