Correlation Between CITIGROUP CDR and Integra Resources

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

By analyzing existing cross correlation between CITIGROUP CDR and Integra Resources Corp, you can compare the effects of market volatilities on CITIGROUP CDR and Integra 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 CDR with a short position of Integra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIGROUP CDR and Integra Resources.

Diversification Opportunities for CITIGROUP CDR and Integra Resources

-0.64

Correlation Coefficient

CITIGROUP CDR  Integra Resources

Excellent diversification

The 3 months correlation between CITIGROUP and Integra is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP CDR and Integra Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra Resources Corp and CITIGROUP CDR 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 CDR are associated (or correlated) with Integra Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra Resources Corp has no effect on the direction of CITIGROUP CDR i.e., CITIGROUP CDR and Integra Resources go up and down completely randomly.

Pair Corralation between CITIGROUP CDR and Integra Resources

Assuming the 90 days trading horizon CITIGROUP CDR is expected to generate 0.44 times more return on investment than Integra Resources. However, CITIGROUP CDR is 2.29 times less risky than Integra Resources. It trades about 0.26 of its potential returns per unit of risk. Integra Resources Corp is currently generating about 0.01 per unit of risk. If you would invest  3,128  in CITIGROUP CDR on May 11, 2025 and sell it today you would earn a total of  753.00  from holding CITIGROUP CDR or generate 24.07% return on investment over 90 days.

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

CITIGROUP CDR  vs.  Integra Resources Corp

CITIGROUP CDR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CITIGROUP CDR are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, CITIGROUP CDR exhibited solid returns over the last few months and may actually be approaching a breakup point.

Integra Resources Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Integra Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Integra Resources is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with CITIGROUP CDR and Integra Resources

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

The idea behind CITIGROUP CDR and Integra Resources Corp 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.