Correlation Between Citigroup and Xelpmoc Design

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

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

Diversification Opportunities for Citigroup and Xelpmoc Design

-0.63

Correlation Coefficient

Citigroup  Xelpmoc Design

Excellent diversification

The 3 months correlation between Citigroup and Xelpmoc is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Xelpmoc Design And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xelpmoc Design And 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 Xelpmoc Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xelpmoc Design And has no effect on the direction of Citigroup i.e., Citigroup and Xelpmoc Design go up and down completely randomly.

Pair Corralation between Citigroup and Xelpmoc Design

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.87 times more return on investment than Xelpmoc Design. However, Citigroup is 1.15 times less risky than Xelpmoc Design. It trades about 0.03 of its potential returns per unit of risk. Xelpmoc Design And is currently generating about -0.32 per unit of risk. If you would invest  7,101  in Citigroup on October 14, 2024 and sell it today you would earn a total of  39.00  from holding Citigroup or generate 0.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.0%
Values	Daily Returns

Citigroup  vs.  Xelpmoc Design And

Citigroup

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Xelpmoc Design And

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xelpmoc Design And 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 primary indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Citigroup and Xelpmoc Design

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

The idea behind Citigroup and Xelpmoc Design And 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.