Correlation Between Citigroup and TWIN OAK

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

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

Diversification Opportunities for Citigroup and TWIN OAK

0.0

Correlation Coefficient

Citigroup  TWIN OAK

Pay attention - limited upside

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

Pair Corralation between Citigroup and TWIN OAK

If you would invest  6,179  in Citigroup on June 26, 2024 and sell it today you would earn a total of  79.00  from holding Citigroup or generate 1.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Citigroup  vs.  TWIN OAK SHORT

Citigroup

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

TWIN OAK SHORT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TWIN OAK SHORT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, TWIN OAK is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Citigroup and TWIN OAK

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

The idea behind Citigroup and TWIN OAK SHORT 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.