Correlation Between CITIGROUP and NR Old

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

By analyzing existing cross correlation between CITIGROUP INC and NR Old, you can compare the effects of market volatilities on CITIGROUP and NR Old 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 NR Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIGROUP and NR Old.

Diversification Opportunities for CITIGROUP and NR Old

0.0

Correlation Coefficient

CITIGROUP  NR Old

Pay attention - limited upside

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

Pair Corralation between CITIGROUP and NR Old

If you would invest (100.00) in NR Old on December 5, 2024 and sell it today you would earn a total of  100.00  from holding NR Old or generate -100.0% return on investment over 90 days.

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

CITIGROUP INC  vs.  NR Old

CITIGROUP INC

Risk-Adjusted Performance

Very Weak

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

NR Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days NR Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, NR Old is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with CITIGROUP and NR Old

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

The idea behind CITIGROUP INC and NR Old 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.