Correlation Between Citigroup and X Factor

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

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

Diversification Opportunities for Citigroup and X Factor

0.0

Correlation Coefficient

Citigroup  X Factor

Pay attention - limited upside

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

Pair Corralation between Citigroup and X Factor

If you would invest  0.01  in X Factor Communications Holdings on December 11, 2024 and sell it today you would earn a total of  0.00  from holding X Factor Communications Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Citigroup  vs.  X Factor Communications Holdin

Citigroup

Risk-Adjusted Performance

Very Weak

Over the last 90 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

X Factor Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days X Factor Communications Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, X Factor is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Citigroup and X Factor

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

The idea behind Citigroup and X Factor Communications Holdings 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.