Correlation Between CITIGROUP CDR and Russel Metals

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

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

Diversification Opportunities for CITIGROUP CDR and Russel Metals

-0.61

Correlation Coefficient

CITIGROUP CDR  Russel Metals

Excellent diversification

The 3 months correlation between CITIGROUP and Russel is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP CDR and Russel Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Russel Metals 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 Russel Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Russel Metals has no effect on the direction of CITIGROUP CDR i.e., CITIGROUP CDR and Russel Metals go up and down completely randomly.

Pair Corralation between CITIGROUP CDR and Russel Metals

Assuming the 90 days trading horizon CITIGROUP CDR is expected to generate 1.13 times more return on investment than Russel Metals. However, CITIGROUP CDR is 1.13 times more volatile than Russel Metals. It trades about 0.13 of its potential returns per unit of risk. Russel Metals is currently generating about -0.06 per unit of risk. If you would invest  3,680  in CITIGROUP CDR on July 4, 2025 and sell it today you would earn a total of  439.00  from holding CITIGROUP CDR or generate 11.93% 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.  Russel Metals

CITIGROUP CDR

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CITIGROUP CDR are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, CITIGROUP CDR may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Russel Metals

Risk-Adjusted Performance

Weakest

Over the last 90 days Russel Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Russel Metals is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CITIGROUP CDR and Russel Metals

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

The idea behind CITIGROUP CDR and Russel Metals 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.