Correlation Between Citigroup and Intelligent Protection

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

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

Diversification Opportunities for Citigroup and Intelligent Protection

0.32

Correlation Coefficient

Citigroup  Intelligent Protection

Weak diversification

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

Pair Corralation between Citigroup and Intelligent Protection

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.35 times more return on investment than Intelligent Protection. However, Citigroup is 2.88 times less risky than Intelligent Protection. It trades about 0.13 of its potential returns per unit of risk. Intelligent Protection Management is currently generating about 0.04 per unit of risk. If you would invest  8,703  in Citigroup on July 6, 2025 and sell it today you would earn a total of  1,071  from holding Citigroup or generate 12.31% return on investment over 90 days.

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

Citigroup  vs.  Intelligent Protection Managem

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Intelligent Protection

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Protection Management are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Intelligent Protection may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Citigroup and Intelligent Protection

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

The idea behind Citigroup and Intelligent Protection Management 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.

Check out your portfolio center.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.