Correlation Between Citigroup and Blue Sphere

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

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

Diversification Opportunities for Citigroup and Blue Sphere

-0.09

Correlation Coefficient

Citigroup  Blue Sphere

Good diversification

The 3 months correlation between Citigroup and Blue is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Blue Sphere Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sphere 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 Blue Sphere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sphere Corp has no effect on the direction of Citigroup i.e., Citigroup and Blue Sphere go up and down completely randomly.

Pair Corralation between Citigroup and Blue Sphere

Taking into account the 90-day investment horizon Citigroup is expected to generate 642.95 times less return on investment than Blue Sphere. But when comparing it to its historical volatility, Citigroup is 213.78 times less risky than Blue Sphere. It trades about 0.09 of its potential returns per unit of risk. Blue Sphere Corp is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Blue Sphere Corp on July 13, 2025 and sell it today you would lose (0.01) from holding Blue Sphere Corp or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Citigroup  vs.  Blue Sphere Corp

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) 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 November 2025.

Blue Sphere Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Sphere Corp are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Blue Sphere reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Blue Sphere

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

The idea behind Citigroup and Blue Sphere 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.