Correlation Between Citigroup and Tiaa Cref

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

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

Diversification Opportunities for Citigroup and Tiaa Cref

0.67

Correlation Coefficient

Citigroup  Tiaa Cref

Poor diversification

The 3 months correlation between Citigroup and Tiaa is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tiaa Cref International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref International 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref International has no effect on the direction of Citigroup i.e., Citigroup and Tiaa Cref go up and down completely randomly.

Pair Corralation between Citigroup and Tiaa Cref

Taking into account the 90-day investment horizon Citigroup is expected to generate 2.03 times more return on investment than Tiaa Cref. However, Citigroup is 2.03 times more volatile than Tiaa Cref International Equity. It trades about 0.11 of its potential returns per unit of risk. Tiaa Cref International Equity is currently generating about 0.11 per unit of risk. If you would invest  9,734  in Citigroup on August 3, 2025 and sell it today you would earn a total of  389.00  from holding Citigroup or generate 4.0% return on investment over 90 days.

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

Citigroup  vs.  Tiaa Cref International Equity

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Tiaa Cref International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref International Equity are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Tiaa Cref may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Citigroup and Tiaa Cref

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

The idea behind Citigroup and Tiaa Cref International Equity 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..