Correlation Between Citigroup and Going Public

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

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

Diversification Opportunities for Citigroup and Going Public

-0.65

Correlation Coefficient

Citigroup  Going Public

Excellent diversification

The 3 months correlation between Citigroup and Going is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Going Public Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Going Public Media 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 Going Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Going Public Media has no effect on the direction of Citigroup i.e., Citigroup and Going Public go up and down completely randomly.

Pair Corralation between Citigroup and Going Public

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.14 times more return on investment than Going Public. However, Citigroup is 1.14 times more volatile than Going Public Media. It trades about 0.14 of its potential returns per unit of risk. Going Public Media is currently generating about -0.24 per unit of risk. If you would invest  6,255  in Citigroup on September 23, 2024 and sell it today you would earn a total of  664.00  from holding Citigroup or generate 10.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Going Public Media

Citigroup

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Going Public Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Going Public Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Citigroup and Going Public

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

The idea behind Citigroup and Going Public Media 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.