Correlation Between Citigroup and Robex Resources

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

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

Diversification Opportunities for Citigroup and Robex Resources

0.05

Correlation Coefficient

Citigroup  Robex Resources

Significant diversification

The 3 months correlation between Citigroup and Robex is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex Resources 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 Robex Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robex Resources has no effect on the direction of Citigroup i.e., Citigroup and Robex Resources go up and down completely randomly.

Pair Corralation between Citigroup and Robex Resources

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.64 times more return on investment than Robex Resources. However, Citigroup is 1.57 times less risky than Robex Resources. It trades about 0.3 of its potential returns per unit of risk. Robex Resources is currently generating about 0.01 per unit of risk. If you would invest  7,294  in Citigroup on May 22, 2025 and sell it today you would earn a total of  2,128  from holding Citigroup or generate 29.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Citigroup  vs.  Robex Resources

Citigroup

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 23 (%) 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.

Robex Resources

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Robex Resources are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental drivers, Robex Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Citigroup and Robex Resources

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

The idea behind Citigroup and Robex Resources 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 Stocks Directory module to find actively traded stocks across global markets.