Correlation Between Citigroup and CHLRBS CT

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

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

Diversification Opportunities for Citigroup and CHLRBS CT

0.0

Correlation Coefficient

Citigroup  CHLRBS CT

Pay attention - limited upside

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

Pair Corralation between Citigroup and CHLRBS CT

If you would invest  4,910  in Citigroup on September 14, 2024 and sell it today you would earn a total of  2,191  from holding Citigroup or generate 44.62% return on investment over 90 days.

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

Citigroup  vs.  CHLRBS CT

Citigroup

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 13 (%) 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.

CHLRBS CT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CHLRBS CT has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, CHLRBS CT is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and CHLRBS CT

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

The idea behind Citigroup and CHLRBS CT 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.