Correlation Between Citigroup and PATTIES FOODS

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

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

Diversification Opportunities for Citigroup and PATTIES FOODS

0.22

Correlation Coefficient

Citigroup  PATTIES FOODS

Modest diversification

The 3 months correlation between Citigroup and PATTIES is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PATTIES FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PATTIES FOODS 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 PATTIES FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PATTIES FOODS has no effect on the direction of Citigroup i.e., Citigroup and PATTIES FOODS go up and down completely randomly.

Pair Corralation between Citigroup and PATTIES FOODS

Taking into account the 90-day investment horizon Citigroup is expected to generate 2.78 times less return on investment than PATTIES FOODS. But when comparing it to its historical volatility, Citigroup is 4.39 times less risky than PATTIES FOODS. It trades about 0.06 of its potential returns per unit of risk. PATTIES FOODS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  71.00  in PATTIES FOODS on July 20, 2025 and sell it today you would earn a total of  3.00  from holding PATTIES FOODS or generate 4.23% 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.  PATTIES FOODS

Citigroup

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

PATTIES FOODS

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in PATTIES FOODS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PATTIES FOODS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and PATTIES FOODS

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

The idea behind Citigroup and PATTIES FOODS 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.