Correlation Between Citigroup and Joint Stock

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

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

Diversification Opportunities for Citigroup and Joint Stock

-0.12

Correlation Coefficient

Citigroup  Joint Stock

Good diversification

The 3 months correlation between Citigroup and Joint is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Joint Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Stock 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 Joint Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Stock has no effect on the direction of Citigroup i.e., Citigroup and Joint Stock go up and down completely randomly.

Pair Corralation between Citigroup and Joint Stock

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.87 times more return on investment than Joint Stock. However, Citigroup is 1.15 times less risky than Joint Stock. It trades about 0.06 of its potential returns per unit of risk. Joint Stock is currently generating about -0.22 per unit of risk. If you would invest  9,515  in Citigroup on August 26, 2025 and sell it today you would earn a total of  454.00  from holding Citigroup or generate 4.77% return on investment over 90 days.

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

Citigroup  vs.  Joint Stock

Citigroup

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 4 (%) 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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

Joint Stock

Risk-Adjusted Performance

Weakest

Over the last 90 days Joint Stock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Citigroup and Joint Stock

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

The idea behind Citigroup and Joint Stock 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..