Correlation Between Citigroup and Southern Home

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

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

Diversification Opportunities for Citigroup and Southern Home

0.0

Correlation Coefficient

Citigroup  Southern Home

Pay attention - limited upside

The 3 months correlation between Citigroup and Southern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Southern Home Medicl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Home Medicl 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 Southern Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Home Medicl has no effect on the direction of Citigroup i.e., Citigroup and Southern Home go up and down completely randomly.

Pair Corralation between Citigroup and Southern Home

If you would invest  9,152  in Citigroup on August 5, 2025 and sell it today you would earn a total of  971.00  from holding Citigroup or generate 10.61% return on investment over 90 days.

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

Citigroup  vs.  Southern Home Medicl

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Southern Home Medicl

Risk-Adjusted Performance

Weakest

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

Pair Trading with Citigroup and Southern Home

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

The idea behind Citigroup and Southern Home Medicl 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.