Correlation Between Citigroup and MicroCloud Hologram

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

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

Diversification Opportunities for Citigroup and MicroCloud Hologram

-0.32

Correlation Coefficient

Citigroup  MicroCloud Hologram

Very good diversification

The 3 months correlation between Citigroup and MicroCloud is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MicroCloud Hologram in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroCloud Hologram 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 MicroCloud Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroCloud Hologram has no effect on the direction of Citigroup i.e., Citigroup and MicroCloud Hologram go up and down completely randomly.

Pair Corralation between Citigroup and MicroCloud Hologram

Taking into account the 90-day investment horizon Citigroup is expected to generate 11.8 times less return on investment than MicroCloud Hologram. But when comparing it to its historical volatility, Citigroup is 14.56 times less risky than MicroCloud Hologram. It trades about 0.12 of its potential returns per unit of risk. MicroCloud Hologram is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3.16  in MicroCloud Hologram on June 30, 2025 and sell it today you would earn a total of  9.84  from holding MicroCloud Hologram or generate 311.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.74%
Values	Daily Returns

Citigroup  vs.  MicroCloud Hologram

Citigroup

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

MicroCloud Hologram

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in MicroCloud Hologram are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, MicroCloud Hologram showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and MicroCloud Hologram

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

The idea behind Citigroup and MicroCloud Hologram 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.