Correlation Between Citigroup and Formcap Corp

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

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

Diversification Opportunities for Citigroup and Formcap Corp

0.0

Correlation Coefficient

Citigroup  Formcap Corp

Pay attention - limited upside

The 3 months correlation between Citigroup and Formcap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Formcap Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formcap Corp 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 Formcap Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formcap Corp has no effect on the direction of Citigroup i.e., Citigroup and Formcap Corp go up and down completely randomly.

Pair Corralation between Citigroup and Formcap Corp

If you would invest  9,208  in Citigroup on August 2, 2025 and sell it today you would earn a total of  814.00  from holding Citigroup or generate 8.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Formcap Corp

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Formcap Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Formcap Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Formcap Corp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Citigroup and Formcap Corp

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

The idea behind Citigroup and Formcap Corp 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.