Correlation Between Citigroup and Boyar Value

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

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

Diversification Opportunities for Citigroup and Boyar Value

0.04

Correlation Coefficient

Citigroup  Boyar Value

Significant diversification

The 3 months correlation between Citigroup and Boyar is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Boyar Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyar Value Fund 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 Boyar Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyar Value Fund has no effect on the direction of Citigroup i.e., Citigroup and Boyar Value go up and down completely randomly.

Pair Corralation between Citigroup and Boyar Value

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.62 times more return on investment than Boyar Value. However, Citigroup is 1.62 times more volatile than Boyar Value Fund. It trades about 0.19 of its potential returns per unit of risk. Boyar Value Fund is currently generating about 0.0 per unit of risk. If you would invest  5,788  in Citigroup on September 14, 2024 and sell it today you would earn a total of  1,408  from holding Citigroup or generate 24.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Citigroup  vs.  Boyar Value Fund

Citigroup

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 14 (%) 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.

Boyar Value Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Boyar Value Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Boyar Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and Boyar Value

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

The idea behind Citigroup and Boyar Value Fund 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 Stocks Directory module to find actively traded stocks across global markets.