Correlation Between Citigroup and Atlantic Grupa

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

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

Diversification Opportunities for Citigroup and Atlantic Grupa

0.49

Correlation Coefficient

Citigroup  Atlantic Grupa

Very weak diversification

The 3 months correlation between Citigroup and Atlantic is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Atlantic Grupa dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Grupa dd 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 Atlantic Grupa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Grupa dd has no effect on the direction of Citigroup i.e., Citigroup and Atlantic Grupa go up and down completely randomly.

Pair Corralation between Citigroup and Atlantic Grupa

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.86 times more return on investment than Atlantic Grupa. However, Citigroup is 1.16 times less risky than Atlantic Grupa. It trades about 0.17 of its potential returns per unit of risk. Atlantic Grupa dd is currently generating about -0.1 per unit of risk. If you would invest  6,980  in Citigroup on September 12, 2024 and sell it today you would earn a total of  216.00  from holding Citigroup or generate 3.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	86.36%
Values	Daily Returns

Citigroup  vs.  Atlantic Grupa dd

Citigroup

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Atlantic Grupa dd

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Atlantic Grupa dd are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Atlantic Grupa is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Citigroup and Atlantic Grupa

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

The idea behind Citigroup and Atlantic Grupa dd 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.