Correlation Between Citigroup and Vigil Health

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

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

Diversification Opportunities for Citigroup and Vigil Health

0.0

Correlation Coefficient

Citigroup  Vigil Health

Pay attention - limited upside

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

Pair Corralation between Citigroup and Vigil Health

If you would invest  6,205  in Citigroup on September 30, 2024 and sell it today you would earn a total of  895.00  from holding Citigroup or generate 14.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Citigroup  vs.  Vigil Health Solutions

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

Vigil Health Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vigil Health Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Vigil Health is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Citigroup and Vigil Health

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

The idea behind Citigroup and Vigil Health Solutions 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.