Correlation Between Citigroup and Apptech Corp

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

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

Diversification Opportunities for Citigroup and Apptech Corp

-0.69

Correlation Coefficient

Citigroup  Apptech Corp

Excellent diversification

The 3 months correlation between Citigroup and Apptech is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Apptech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apptech Corp 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 Apptech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apptech Corp has no effect on the direction of Citigroup i.e., Citigroup and Apptech Corp go up and down completely randomly.

Pair Corralation between Citigroup and Apptech Corp

Taking into account the 90-day investment horizon Citigroup is expected to generate 6.24 times less return on investment than Apptech Corp. But when comparing it to its historical volatility, Citigroup is 21.18 times less risky than Apptech Corp. It trades about 0.37 of its potential returns per unit of risk. Apptech Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  32.00  in Apptech Corp on April 24, 2025 and sell it today you would lose (2.00) from holding Apptech Corp or give up 6.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	49.18%
Values	Daily Returns

Citigroup  vs.  Apptech Corp

Citigroup

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 29 (%) 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.

Apptech Corp

Risk-Adjusted Performance

OK

Over the last 90 days Apptech Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal fundamental indicators, Apptech Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Apptech Corp

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

The idea behind Citigroup and Apptech Corp 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.