Correlation Between Citigroup and JSC National

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Can any of the company-specific risk be diversified away by investing in both Citigroup and JSC National 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 JSC National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and JSC National Atomic, you can compare the effects of market volatilities on Citigroup and JSC National 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 JSC National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and JSC National.

Diversification Opportunities for Citigroup and JSC National

0.63
  Correlation Coefficient

Poor diversification

The 3 months correlation between Citigroup and JSC is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and JSC National Atomic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC National Atomic 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 JSC National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC National Atomic has no effect on the direction of Citigroup i.e., Citigroup and JSC National go up and down completely randomly.

Pair Corralation between Citigroup and JSC National

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.98 times more return on investment than JSC National. However, Citigroup is 1.02 times less risky than JSC National. It trades about 0.14 of its potential returns per unit of risk. JSC National Atomic is currently generating about 0.05 per unit of risk. If you would invest  6,159  in Citigroup on September 20, 2024 and sell it today you would earn a total of  953.00  from holding Citigroup or generate 15.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

Citigroup  vs.  JSC National Atomic

 Performance 
       Timeline  
Citigroup 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 10 (%) 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.
JSC National Atomic 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in JSC National Atomic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, JSC National is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Citigroup and JSC National Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Citigroup and JSC National

The main advantage of trading using opposite Citigroup and JSC National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, JSC National 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 JSC National will offset losses from the drop in JSC National's long position.
The idea behind Citigroup and JSC National Atomic 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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