Correlation Between Citigroup and Adicet Bio

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

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

Diversification Opportunities for Citigroup and Adicet Bio

0.33

Correlation Coefficient

Citigroup  Adicet Bio

Weak diversification

The 3 months correlation between Citigroup and Adicet is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Adicet Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adicet Bio 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 Adicet Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adicet Bio has no effect on the direction of Citigroup i.e., Citigroup and Adicet Bio go up and down completely randomly.

Pair Corralation between Citigroup and Adicet Bio

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.04 times less return on investment than Adicet Bio. But when comparing it to its historical volatility, Citigroup is 4.57 times less risky than Adicet Bio. It trades about 0.43 of its potential returns per unit of risk. Adicet Bio is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  57.00  in Adicet Bio on April 21, 2025 and sell it today you would earn a total of  19.00  from holding Adicet Bio or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Adicet Bio

Citigroup

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 34 (%) 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.

Adicet Bio

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Adicet Bio are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, Adicet Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Adicet Bio

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

The idea behind Citigroup and Adicet Bio 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.