Correlation Between Citigroup and Intel Corp

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

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

Diversification Opportunities for Citigroup and Intel Corp

0.6

Correlation Coefficient

Citigroup  Intel Corp

Poor diversification

The 3 months correlation between Citigroup and Intel is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Intel Corp CEDEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel Corp CEDEAR 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 Intel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel Corp CEDEAR has no effect on the direction of Citigroup i.e., Citigroup and Intel Corp go up and down completely randomly.

Pair Corralation between Citigroup and Intel Corp

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.55 times more return on investment than Intel Corp. However, Citigroup is 1.8 times less risky than Intel Corp. It trades about 0.26 of its potential returns per unit of risk. Intel Corp CEDEAR is currently generating about 0.1 per unit of risk. If you would invest  7,523  in Citigroup on May 16, 2025 and sell it today you would earn a total of  1,942  from holding Citigroup or generate 25.81% return on investment over 90 days.

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

Citigroup  vs.  Intel Corp CEDEAR

Citigroup

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 20 (%) 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.

Intel Corp CEDEAR

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Intel Corp CEDEAR are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intel Corp sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Intel Corp

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

The idea behind Citigroup and Intel Corp CEDEAR 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.