Correlation Between Citigroup and Advanced Biomedical

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

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

Diversification Opportunities for Citigroup and Advanced Biomedical

-0.74

Correlation Coefficient

Citigroup  Advanced Biomedical

Pay attention - limited upside

The 3 months correlation between Citigroup and Advanced is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Advanced Biomedical Technologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Biomedical 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 Advanced Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Biomedical has no effect on the direction of Citigroup i.e., Citigroup and Advanced Biomedical go up and down completely randomly.

Pair Corralation between Citigroup and Advanced Biomedical

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.12 times more return on investment than Advanced Biomedical. However, Citigroup is 8.28 times less risky than Advanced Biomedical. It trades about 0.26 of its potential returns per unit of risk. Advanced Biomedical Technologies is currently generating about -0.04 per unit of risk. If you would invest  7,563  in Citigroup on May 17, 2025 and sell it today you would earn a total of  1,983  from holding Citigroup or generate 26.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Citigroup  vs.  Advanced Biomedical Technologi

Citigroup

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Advanced Biomedical

Risk-Adjusted Performance

Weakest

Over the last 90 days Advanced Biomedical Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Citigroup and Advanced Biomedical

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

The idea behind Citigroup and Advanced Biomedical Technologies 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.