Correlation Between Citigroup and Profunds Money

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

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

Diversification Opportunities for Citigroup and Profunds Money

0.0

Correlation Coefficient

Citigroup  Profunds Money

Pay attention - limited upside

The 3 months correlation between Citigroup and Profunds is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Profunds Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profunds Money 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 Profunds Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profunds Money has no effect on the direction of Citigroup i.e., Citigroup and Profunds Money go up and down completely randomly.

Pair Corralation between Citigroup and Profunds Money

If you would invest  7,024  in Citigroup on May 4, 2025 and sell it today you would earn a total of  2,159  from holding Citigroup or generate 30.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	53.97%
Values	Daily Returns

Citigroup  vs.  Profunds Money

Citigroup

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Profunds Money

Risk-Adjusted Performance

Very Weak

Over the last 90 days Profunds Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Profunds Money 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 Profunds Money

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

The idea behind Citigroup and Profunds Money 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 Transaction History module to view history of all your transactions and understand their impact on performance.