Correlation Between Citigroup and Semper Paratus

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

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

Diversification Opportunities for Citigroup and Semper Paratus

0.41

Correlation Coefficient

Citigroup  Semper Paratus

Very weak diversification

The 3 months correlation between Citigroup and Semper is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Semper Paratus Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semper Paratus Acqui 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 Semper Paratus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semper Paratus Acqui has no effect on the direction of Citigroup i.e., Citigroup and Semper Paratus go up and down completely randomly.

Pair Corralation between Citigroup and Semper Paratus

If you would invest  4,788  in Citigroup on September 13, 2024 and sell it today you would earn a total of  2,408  from holding Citigroup or generate 50.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.4%
Values	Daily Returns

Citigroup  vs.  Semper Paratus Acquisition

Citigroup

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 15 (%) 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.

Semper Paratus Acqui

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Semper Paratus Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Semper Paratus is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Citigroup and Semper Paratus

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

The idea behind Citigroup and Semper Paratus Acquisition 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.