Correlation Between Citigroup and Australian Oilseeds

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

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

Diversification Opportunities for Citigroup and Australian Oilseeds

-0.01

Correlation Coefficient

Citigroup  Australian Oilseeds

Good diversification

The 3 months correlation between Citigroup and Australian is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Australian Oilseeds Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Australian Oilseeds 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 Australian Oilseeds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Australian Oilseeds has no effect on the direction of Citigroup i.e., Citigroup and Australian Oilseeds go up and down completely randomly.

Pair Corralation between Citigroup and Australian Oilseeds

Taking into account the 90-day investment horizon Citigroup is expected to generate 13.26 times less return on investment than Australian Oilseeds. But when comparing it to its historical volatility, Citigroup is 15.99 times less risky than Australian Oilseeds. It trades about 0.11 of its potential returns per unit of risk. Australian Oilseeds Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  53.00  in Australian Oilseeds Holdings on September 4, 2025 and sell it today you would earn a total of  28.00  from holding Australian Oilseeds Holdings or generate 52.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Australian Oilseeds Holdings

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Australian Oilseeds

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Australian Oilseeds Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Australian Oilseeds unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Australian Oilseeds

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

The idea behind Citigroup and Australian Oilseeds Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.