Correlation Between Citigroup and Quantex Fund

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

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

Diversification Opportunities for Citigroup and Quantex Fund

0.65

Correlation Coefficient

Citigroup  Quantex Fund

Poor diversification

The 3 months correlation between Citigroup and Quantex is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Quantex Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantex Fund Institu 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 Quantex Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantex Fund Institu has no effect on the direction of Citigroup i.e., Citigroup and Quantex Fund go up and down completely randomly.

Pair Corralation between Citigroup and Quantex Fund

Taking into account the 90-day investment horizon Citigroup is expected to generate 2.3 times more return on investment than Quantex Fund. However, Citigroup is 2.3 times more volatile than Quantex Fund Institutional. It trades about 0.37 of its potential returns per unit of risk. Quantex Fund Institutional is currently generating about 0.3 per unit of risk. If you would invest  6,760  in Citigroup on May 1, 2025 and sell it today you would earn a total of  2,688  from holding Citigroup or generate 39.76% return on investment over 90 days.

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

Citigroup  vs.  Quantex Fund Institutional

Citigroup

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 29 (%) 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.

Quantex Fund Institu

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Quantex Fund Institutional are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Quantex Fund may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Citigroup and Quantex Fund

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

The idea behind Citigroup and Quantex Fund Institutional 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.