Correlation Between Citigroup and BB Liquidating

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

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

Diversification Opportunities for Citigroup and BB Liquidating

0.0

Correlation Coefficient

Citigroup  BB Liquidating

Pay attention - limited upside

The 3 months correlation between Citigroup and BLIBQ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BB Liquidating B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Liquidating B 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 BB Liquidating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Liquidating B has no effect on the direction of Citigroup i.e., Citigroup and BB Liquidating go up and down completely randomly.

Pair Corralation between Citigroup and BB Liquidating

If you would invest  6,760  in Citigroup on May 1, 2025 and sell it today you would earn a total of  2,821  from holding Citigroup or generate 41.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Citigroup  vs.  BB Liquidating B

Citigroup

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 30 (%) 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.

BB Liquidating B

Risk-Adjusted Performance

Very Weak

Over the last 90 days BB Liquidating B has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, BB Liquidating is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Citigroup and BB Liquidating

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

The idea behind Citigroup and BB Liquidating B 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.