Correlation Between Citigroup and Golden State

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

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

Diversification Opportunities for Citigroup and Golden State

0.49

Correlation Coefficient

Citigroup  Golden State

Very weak diversification

The 3 months correlation between Citigroup and Golden is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Golden State Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden State Bancorp 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 Golden State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden State Bancorp has no effect on the direction of Citigroup i.e., Citigroup and Golden State go up and down completely randomly.

Pair Corralation between Citigroup and Golden State

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.46 times more return on investment than Golden State. However, Citigroup is 1.46 times more volatile than Golden State Bancorp. It trades about 0.1 of its potential returns per unit of risk. Golden State Bancorp is currently generating about 0.06 per unit of risk. If you would invest  9,483  in Citigroup on September 5, 2025 and sell it today you would earn a total of  836.00  from holding Citigroup or generate 8.82% return on investment over 90 days.

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

Citigroup  vs.  Golden State Bancorp

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Golden State Bancorp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Golden State Bancorp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental drivers, Golden State is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and Golden State

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

The idea behind Citigroup and Golden State Bancorp 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.