Correlation Between Citigroup and Cooper Stnd

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

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

Diversification Opportunities for Citigroup and Cooper Stnd

0.52

Correlation Coefficient

Citigroup  Cooper Stnd

Very weak diversification

The 3 months correlation between Citigroup and Cooper is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cooper Stnd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Stnd 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 Cooper Stnd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Stnd has no effect on the direction of Citigroup i.e., Citigroup and Cooper Stnd go up and down completely randomly.

Pair Corralation between Citigroup and Cooper Stnd

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.41 times more return on investment than Cooper Stnd. However, Citigroup is 2.44 times less risky than Cooper Stnd. It trades about 0.27 of its potential returns per unit of risk. Cooper Stnd is currently generating about 0.1 per unit of risk. If you would invest  7,523  in Citigroup on May 16, 2025 and sell it today you would earn a total of  2,023  from holding Citigroup or generate 26.89% return on investment over 90 days.

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

Citigroup  vs.  Cooper Stnd

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.

Cooper Stnd

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cooper Stnd are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Cooper Stnd unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Cooper Stnd

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

The idea behind Citigroup and Cooper Stnd 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.