Correlation Between Citigroup and Mfs Moderate

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

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

Diversification Opportunities for Citigroup and Mfs Moderate

0.28

Correlation Coefficient

Citigroup  Mfs Moderate

Modest diversification

The 3 months correlation between Citigroup and Mfs is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mfs Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Moderate Allocation 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 Mfs Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Moderate Allocation has no effect on the direction of Citigroup i.e., Citigroup and Mfs Moderate go up and down completely randomly.

Pair Corralation between Citigroup and Mfs Moderate

Taking into account the 90-day investment horizon Citigroup is expected to generate 3.71 times more return on investment than Mfs Moderate. However, Citigroup is 3.71 times more volatile than Mfs Moderate Allocation. It trades about 0.12 of its potential returns per unit of risk. Mfs Moderate Allocation is currently generating about 0.01 per unit of risk. If you would invest  9,823  in Citigroup on September 11, 2025 and sell it today you would earn a total of  1,120  from holding Citigroup or generate 11.4% 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.  Mfs Moderate Allocation

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Mfs Moderate Allocation

Risk-Adjusted Performance

Weakest

Over the last 90 days Mfs Moderate Allocation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Mfs Moderate 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 Mfs Moderate

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

The idea behind Citigroup and Mfs Moderate Allocation 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.