Correlation Between Citigroup and Catalystlyons Tactical

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

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

Diversification Opportunities for Citigroup and Catalystlyons Tactical

0.92

Correlation Coefficient

Citigroup  Catalystlyons Tactical

Almost no diversification

The 3 months correlation between Citigroup and Catalystlyons is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Catalystlyons Tactical Allocat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystlyons Tactical 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 Catalystlyons Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystlyons Tactical has no effect on the direction of Citigroup i.e., Citigroup and Catalystlyons Tactical go up and down completely randomly.

Pair Corralation between Citigroup and Catalystlyons Tactical

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.91 times more return on investment than Catalystlyons Tactical. However, Citigroup is 1.91 times more volatile than Catalystlyons Tactical Allocation. It trades about 0.38 of its potential returns per unit of risk. Catalystlyons Tactical Allocation is currently generating about 0.21 per unit of risk. 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	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Catalystlyons Tactical Allocat

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.

Catalystlyons Tactical

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystlyons Tactical Allocation are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Catalystlyons Tactical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Citigroup and Catalystlyons Tactical

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

The idea behind Citigroup and Catalystlyons Tactical Allocation 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.