Correlation Between Citigroup and Target 2010

Can any of the company-specific risk be diversified away by investing in both Citigroup and Target 2010 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 Target 2010 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and Target 2010 Series, you can compare the effects of market volatilities on Citigroup and Target 2010 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 Target 2010. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Target 2010.

Diversification Opportunities for Citigroup and Target 2010

0.0

Correlation Coefficient

Citigroup  Target 2010

Pay attention - limited upside

The 3 months correlation between Citigroup and Target is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Target 2010 Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target 2010 Series 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 Target 2010. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target 2010 Series has no effect on the direction of Citigroup i.e., Citigroup and Target 2010 go up and down completely randomly.

Pair Corralation between Citigroup and Target 2010

If you would invest  7,498  in Citigroup on May 26, 2025 and sell it today you would earn a total of  2,028  from holding Citigroup or generate 27.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Citigroup  vs.  Target 2010 Series

Citigroup

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 21 (%) 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.

Target 2010 Series

Risk-Adjusted Performance

Weakest

Over the last 90 days Target 2010 Series has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Target 2010 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 Target 2010

The main advantage of trading using opposite Citigroup and Target 2010 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Target 2010 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 Target 2010 will offset losses from the drop in Target 2010's long position.

The idea behind Citigroup and Target 2010 Series 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.