Correlation Between Citigroup and Catalyst/millburn

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

By analyzing existing cross correlation between Citigroup and Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Citigroup and Catalyst/millburn 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 Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Catalyst/millburn.

Diversification Opportunities for Citigroup and Catalyst/millburn

0.49

Correlation Coefficient

Citigroup  Catalyst/millburn

Very weak diversification

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

Pair Corralation between Citigroup and Catalyst/millburn

Taking into account the 90-day investment horizon Citigroup is expected to generate 3.49 times more return on investment than Catalyst/millburn. However, Citigroup is 3.49 times more volatile than Catalystmillburn Hedge Strategy. It trades about 0.24 of its potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.08 per unit of risk. If you would invest  8,456  in Citigroup on June 29, 2025 and sell it today you would earn a total of  1,886  from holding Citigroup or generate 22.3% return on investment over 90 days.

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

Citigroup  vs.  Catalystmillburn Hedge Strateg

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.

Catalystmillburn Hedge

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystmillburn Hedge Strategy are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Catalyst/millburn 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 Catalyst/millburn

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

The idea behind Citigroup and Catalystmillburn Hedge Strategy 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.