Correlation Between Citigroup and Vy(r) Blackrock

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

By analyzing existing cross correlation between Citigroup and Vy Blackrock Inflation, you can compare the effects of market volatilities on Citigroup and Vy(r) Blackrock 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 Vy(r) Blackrock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Vy(r) Blackrock.

Diversification Opportunities for Citigroup and Vy(r) Blackrock

0.84

Correlation Coefficient

Citigroup  Vy(r) Blackrock

Very poor diversification

The 3 months correlation between Citigroup and Vy(r) is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Vy Blackrock Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Blackrock Inflation 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 Vy(r) Blackrock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Blackrock Inflation has no effect on the direction of Citigroup i.e., Citigroup and Vy(r) Blackrock go up and down completely randomly.

Pair Corralation between Citigroup and Vy(r) Blackrock

Taking into account the 90-day investment horizon Citigroup is expected to generate 6.04 times more return on investment than Vy(r) Blackrock. However, Citigroup is 6.04 times more volatile than Vy Blackrock Inflation. It trades about 0.37 of its potential returns per unit of risk. Vy Blackrock Inflation is currently generating about 0.12 per unit of risk. If you would invest  6,762  in Citigroup on April 24, 2025 and sell it today you would earn a total of  2,638  from holding Citigroup or generate 39.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

Citigroup  vs.  Vy Blackrock Inflation

Citigroup

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 29 (%) 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.

Vy Blackrock Inflation

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Blackrock Inflation are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Vy(r) Blackrock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and Vy(r) Blackrock

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

The idea behind Citigroup and Vy Blackrock Inflation 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.