Correlation Between Citigroup and Vycor Medical

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

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

Diversification Opportunities for Citigroup and Vycor Medical

-0.16

Correlation Coefficient

Citigroup  Vycor Medical

Good diversification

The 3 months correlation between Citigroup and Vycor is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Vycor Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vycor Medical 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 Vycor Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vycor Medical has no effect on the direction of Citigroup i.e., Citigroup and Vycor Medical go up and down completely randomly.

Pair Corralation between Citigroup and Vycor Medical

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.13 times more return on investment than Vycor Medical. However, Citigroup is 7.55 times less risky than Vycor Medical. It trades about 0.29 of its potential returns per unit of risk. Vycor Medical is currently generating about -0.02 per unit of risk. If you would invest  7,024  in Citigroup on May 4, 2025 and sell it today you would earn a total of  2,159  from holding Citigroup or generate 30.74% return on investment over 90 days.

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

Citigroup  vs.  Vycor Medical

Citigroup

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Vycor Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vycor Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Citigroup and Vycor Medical

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

The idea behind Citigroup and Vycor Medical 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.