Correlation Between Citigroup and Suno Infra

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

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

Diversification Opportunities for Citigroup and Suno Infra

-0.71

Correlation Coefficient

Citigroup  Suno Infra

Pay attention - limited upside

The 3 months correlation between Citigroup and Suno is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Suno Infra Debentures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suno Infra Debentures 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 Suno Infra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suno Infra Debentures has no effect on the direction of Citigroup i.e., Citigroup and Suno Infra go up and down completely randomly.

Pair Corralation between Citigroup and Suno Infra

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.8 times more return on investment than Suno Infra. However, Citigroup is 1.25 times less risky than Suno Infra. It trades about 0.23 of its potential returns per unit of risk. Suno Infra Debentures is currently generating about -0.34 per unit of risk. If you would invest  6,902  in Citigroup on September 13, 2024 and sell it today you would earn a total of  271.00  from holding Citigroup or generate 3.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	90.91%
Values	Daily Returns

Citigroup  vs.  Suno Infra Debentures

Citigroup

Risk-Adjusted Performance

15 of 100

Good

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.

Suno Infra Debentures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Suno Infra Debentures has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Etf's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Pair Trading with Citigroup and Suno Infra

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

The idea behind Citigroup and Suno Infra Debentures 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.