Correlation Between Citigroup and Advent Technologies

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

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

Diversification Opportunities for Citigroup and Advent Technologies

-0.52

Correlation Coefficient

Citigroup  Advent Technologies

Excellent diversification

The 3 months correlation between Citigroup and Advent is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Advent Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Technologies 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 Advent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Technologies has no effect on the direction of Citigroup i.e., Citigroup and Advent Technologies go up and down completely randomly.

Pair Corralation between Citigroup and Advent Technologies

Taking into account the 90-day investment horizon Citigroup is expected to generate 19.98 times less return on investment than Advent Technologies. But when comparing it to its historical volatility, Citigroup is 27.44 times less risky than Advent Technologies. It trades about 0.11 of its potential returns per unit of risk. Advent Technologies Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1.34  in Advent Technologies Holdings on September 1, 2025 and sell it today you would lose (1.10) from holding Advent Technologies Holdings or give up 82.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.31%
Values	Daily Returns

Citigroup  vs.  Advent Technologies Holdings

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Advent Technologies

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Technologies Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Advent Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Advent Technologies

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

The idea behind Citigroup and Advent Technologies Holdings 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.