Correlation Between Citigroup and Streamline Health

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

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

Diversification Opportunities for Citigroup and Streamline Health

0.73

Correlation Coefficient

Citigroup  Streamline Health

Poor diversification

The 3 months correlation between Citigroup and Streamline is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Streamline Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamline Health 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 Streamline Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Streamline Health has no effect on the direction of Citigroup i.e., Citigroup and Streamline Health go up and down completely randomly.

Pair Corralation between Citigroup and Streamline Health

Taking into account the 90-day investment horizon Citigroup is expected to generate 6.31 times less return on investment than Streamline Health. But when comparing it to its historical volatility, Citigroup is 12.12 times less risky than Streamline Health. It trades about 0.28 of its potential returns per unit of risk. Streamline Health Solutions is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  220.00  in Streamline Health Solutions on May 27, 2025 and sell it today you would earn a total of  313.00  from holding Streamline Health Solutions or generate 142.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	85.71%
Values	Daily Returns

Citigroup  vs.  Streamline Health Solutions

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.

Streamline Health

Risk-Adjusted Performance

Good

Over the last 90 days Streamline Health Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak basic indicators, Streamline Health displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Streamline Health

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

The idea behind Citigroup and Streamline Health Solutions 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.