Correlation Between Citigroup and Southern Concepts

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

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

Diversification Opportunities for Citigroup and Southern Concepts

0.0

Correlation Coefficient

Citigroup  Southern Concepts

Pay attention - limited upside

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

Pair Corralation between Citigroup and Southern Concepts

If you would invest  7,117  in Citigroup on May 8, 2025 and sell it today you would earn a total of  2,035  from holding Citigroup or generate 28.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Citigroup  vs.  Southern Concepts Restaurant

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.

Southern Concepts

Risk-Adjusted Performance

Weakest

Over the last 90 days Southern Concepts Restaurant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Southern Concepts is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Citigroup and Southern Concepts

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

The idea behind Citigroup and Southern Concepts Restaurant 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.

Check out your portfolio center.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.