Correlation Between Citigroup and Element 29

Can any of the company-specific risk be diversified away by investing in both Citigroup and Element 29 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 Element 29 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and Element 29 Resources, you can compare the effects of market volatilities on Citigroup and Element 29 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 Element 29. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Element 29.

Diversification Opportunities for Citigroup and Element 29

-0.21

Correlation Coefficient

Citigroup  Element 29

Very good diversification

The 3 months correlation between Citigroup and Element is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Element 29 Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Element 29 Resources 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 Element 29. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Element 29 Resources has no effect on the direction of Citigroup i.e., Citigroup and Element 29 go up and down completely randomly.

Pair Corralation between Citigroup and Element 29

Taking into account the 90-day investment horizon Citigroup is expected to generate 2.75 times less return on investment than Element 29. But when comparing it to its historical volatility, Citigroup is 3.24 times less risky than Element 29. It trades about 0.17 of its potential returns per unit of risk. Element 29 Resources is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  38.00  in Element 29 Resources on June 12, 2025 and sell it today you would earn a total of  5.00  from holding Element 29 Resources or generate 13.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Citigroup  vs.  Element 29 Resources

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.

Element 29 Resources

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Element 29 Resources are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Element 29 may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Citigroup and Element 29

The main advantage of trading using opposite Citigroup and Element 29 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Element 29 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 Element 29 will offset losses from the drop in Element 29's long position.

The idea behind Citigroup and Element 29 Resources 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.