Correlation Between Citigroup and Orezone Gold

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

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

Diversification Opportunities for Citigroup and Orezone Gold

0.23

Correlation Coefficient

Citigroup  Orezone Gold

Modest diversification

The 3 months correlation between Citigroup and Orezone is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Orezone Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orezone Gold Corp 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 Orezone Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orezone Gold Corp has no effect on the direction of Citigroup i.e., Citigroup and Orezone Gold go up and down completely randomly.

Pair Corralation between Citigroup and Orezone Gold

Taking into account the 90-day investment horizon Citigroup is expected to generate 2.97 times less return on investment than Orezone Gold. But when comparing it to its historical volatility, Citigroup is 2.76 times less risky than Orezone Gold. It trades about 0.13 of its potential returns per unit of risk. Orezone Gold Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  87.00  in Orezone Gold Corp on September 9, 2025 and sell it today you would earn a total of  32.00  from holding Orezone Gold Corp or generate 36.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Citigroup  vs.  Orezone Gold Corp

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Orezone Gold Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Orezone Gold Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Orezone Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Orezone Gold

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

The idea behind Citigroup and Orezone Gold 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.

Check out your portfolio center.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.