Correlation Between Citigroup and Fleischerei Bedarf

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

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

Diversification Opportunities for Citigroup and Fleischerei Bedarf

0.0

Correlation Coefficient

Citigroup  Fleischerei Bedarf

Pay attention - limited upside

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

Pair Corralation between Citigroup and Fleischerei Bedarf

If you would invest  6,205  in Citigroup on September 29, 2024 and sell it today you would earn a total of  895.00  from holding Citigroup or generate 14.42% return on investment over 90 days.

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

Citigroup  vs.  Fleischerei Bedarf AG

Citigroup

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) 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.

Fleischerei Bedarf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fleischerei Bedarf AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Fleischerei Bedarf is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Citigroup and Fleischerei Bedarf

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

The idea behind Citigroup and Fleischerei Bedarf AG 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.