Correlation Between Citigroup and Casio Computer

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

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

Diversification Opportunities for Citigroup and Casio Computer

0.26

Correlation Coefficient

Citigroup  Casio Computer

Modest diversification

The 3 months correlation between Citigroup and Casio is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Casio Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casio Computer 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 Casio Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casio Computer has no effect on the direction of Citigroup i.e., Citigroup and Casio Computer go up and down completely randomly.

Pair Corralation between Citigroup and Casio Computer

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.61 times more return on investment than Casio Computer. However, Citigroup is 1.65 times less risky than Casio Computer. It trades about 0.38 of its potential returns per unit of risk. Casio Computer Co is currently generating about 0.06 per unit of risk. If you would invest  6,784  in Citigroup on April 30, 2025 and sell it today you would earn a total of  2,728  from holding Citigroup or generate 40.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Citigroup  vs.  Casio Computer Co

Citigroup

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 29 (%) 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.

Casio Computer

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Casio Computer Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Casio Computer may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Citigroup and Casio Computer

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

The idea behind Citigroup and Casio Computer Co 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.