Correlation Between Citigroup and Evaluator Moderate

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

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

Diversification Opportunities for Citigroup and Evaluator Moderate

0.96

Correlation Coefficient

Citigroup  Evaluator Moderate

Almost no diversification

The 3 months correlation between Citigroup and Evaluator is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Evaluator Moderate Rms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaluator Moderate Rms 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 Evaluator Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaluator Moderate Rms has no effect on the direction of Citigroup i.e., Citigroup and Evaluator Moderate go up and down completely randomly.

Pair Corralation between Citigroup and Evaluator Moderate

Taking into account the 90-day investment horizon Citigroup is expected to generate 2.99 times more return on investment than Evaluator Moderate. However, Citigroup is 2.99 times more volatile than Evaluator Moderate Rms. It trades about 0.39 of its potential returns per unit of risk. Evaluator Moderate Rms is currently generating about 0.36 per unit of risk. If you would invest  6,577  in Citigroup on April 23, 2025 and sell it today you would earn a total of  2,768  from holding Citigroup or generate 42.09% return on investment over 90 days.

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

Citigroup  vs.  Evaluator Moderate Rms

Citigroup

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 31 (%) 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.

Evaluator Moderate Rms

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Evaluator Moderate Rms are ranked lower than 27 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Evaluator Moderate may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Citigroup and Evaluator Moderate

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

The idea behind Citigroup and Evaluator Moderate Rms 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 Global Correlations module to find global opportunities by holding instruments from different markets.