Correlation Between Citigroup and Comcast Corp

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

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

Diversification Opportunities for Citigroup and Comcast Corp

-0.18

Correlation Coefficient

Citigroup  Comcast Corp

Good diversification

The 3 months correlation between Citigroup and Comcast is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Comcast Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast 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 Comcast Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comcast Corp has no effect on the direction of Citigroup i.e., Citigroup and Comcast Corp go up and down completely randomly.

Pair Corralation between Citigroup and Comcast Corp

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.04 times more return on investment than Comcast Corp. However, Citigroup is 1.04 times more volatile than Comcast Corp. It trades about 0.25 of its potential returns per unit of risk. Comcast Corp is currently generating about -0.1 per unit of risk. If you would invest  7,480  in Citigroup on May 14, 2025 and sell it today you would earn a total of  1,751  from holding Citigroup or generate 23.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Citigroup  vs.  Comcast Corp

Citigroup

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 19 (%) 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.

Comcast Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Comcast Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Citigroup and Comcast Corp

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

The idea behind Citigroup and Comcast 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 .