Correlation Between Citigroup and Cardiff Lexington

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

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

Diversification Opportunities for Citigroup and Cardiff Lexington

-0.59

Correlation Coefficient

Citigroup  Cardiff Lexington

Excellent diversification

The 3 months correlation between Citigroup and Cardiff is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cardiff Lexington Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardiff Lexington 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 Cardiff Lexington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardiff Lexington Corp has no effect on the direction of Citigroup i.e., Citigroup and Cardiff Lexington go up and down completely randomly.

Pair Corralation between Citigroup and Cardiff Lexington

Taking into account the 90-day investment horizon Citigroup is expected to generate 5.88 times less return on investment than Cardiff Lexington. But when comparing it to its historical volatility, Citigroup is 23.63 times less risky than Cardiff Lexington. It trades about 0.26 of its potential returns per unit of risk. Cardiff Lexington Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  310.00  in Cardiff Lexington Corp on May 12, 2025 and sell it today you would lose (110.00) from holding Cardiff Lexington Corp or give up 35.48% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Citigroup  vs.  Cardiff Lexington Corp

Citigroup

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cardiff Lexington Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Cardiff Lexington Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain forward indicators, Cardiff Lexington showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Cardiff Lexington

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

The idea behind Citigroup and Cardiff Lexington 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .