Correlation Between Citigroup and Corem Property

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

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

Diversification Opportunities for Citigroup and Corem Property

0.68

Correlation Coefficient

Citigroup  Corem Property

Poor diversification

The 3 months correlation between Citigroup and Corem is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Corem Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corem Property Group 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 Corem Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corem Property Group has no effect on the direction of Citigroup i.e., Citigroup and Corem Property go up and down completely randomly.

Pair Corralation between Citigroup and Corem Property

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.63 times more return on investment than Corem Property. However, Citigroup is 1.63 times more volatile than Corem Property Group. It trades about 0.28 of its potential returns per unit of risk. Corem Property Group is currently generating about 0.16 per unit of risk. If you would invest  7,498  in Citigroup on May 26, 2025 and sell it today you would earn a total of  2,028  from holding Citigroup or generate 27.05% return on investment over 90 days.

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

Citigroup  vs.  Corem Property Group

Citigroup

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 21 (%) 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.

Corem Property Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Corem Property Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Corem Property may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Citigroup and Corem Property

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

The idea behind Citigroup and Corem Property Group 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.

Check out your portfolio center.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.