Correlation Between Citigroup and Quadient

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

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

Diversification Opportunities for Citigroup and Quadient

0.0

Correlation Coefficient

Citigroup  Quadient

Pay attention - limited upside

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

Pair Corralation between Citigroup and Quadient

If you would invest  1,870  in Quadient SA on September 24, 2024 and sell it today you would earn a total of  0.00  from holding Quadient SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Citigroup  vs.  Quadient SA

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.

Quadient SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quadient SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Quadient is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Citigroup and Quadient

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

The idea behind Citigroup and Quadient SA 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.