Correlation Between Citigroup and Tiaa-cref Large-cap

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

By analyzing existing cross correlation between Citigroup and Tiaa Cref Large Cap Growth, you can compare the effects of market volatilities on Citigroup and Tiaa-cref Large-cap 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 Tiaa-cref Large-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tiaa-cref Large-cap.

Diversification Opportunities for Citigroup and Tiaa-cref Large-cap

0.51

Correlation Coefficient

Citigroup  Tiaa-cref Large-cap

Very weak diversification

The 3 months correlation between Citigroup and Tiaa-cref is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tiaa Cref Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Large-cap 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 Tiaa-cref Large-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa-cref Large-cap has no effect on the direction of Citigroup i.e., Citigroup and Tiaa-cref Large-cap go up and down completely randomly.

Pair Corralation between Citigroup and Tiaa-cref Large-cap

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.41 times more return on investment than Tiaa-cref Large-cap. However, Citigroup is 1.41 times more volatile than Tiaa Cref Large Cap Growth. It trades about 0.06 of its potential returns per unit of risk. Tiaa Cref Large Cap Growth is currently generating about 0.08 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 Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Tiaa Cref Large Cap Growth

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.

Tiaa-cref Large-cap

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Large Cap Growth are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Tiaa-cref Large-cap 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 Tiaa-cref Large-cap

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

The idea behind Citigroup and Tiaa Cref Large Cap Growth 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.