Correlation Between CITIGROUP CDR and Partners Value

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

By analyzing existing cross correlation between CITIGROUP CDR and Partners Value Investments, you can compare the effects of market volatilities on CITIGROUP CDR and Partners Value 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 CDR with a short position of Partners Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIGROUP CDR and Partners Value.

Diversification Opportunities for CITIGROUP CDR and Partners Value

0.53

Correlation Coefficient

CITIGROUP CDR  Partners Value

Very weak diversification

The 3 months correlation between CITIGROUP and Partners is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP CDR and Partners Value Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners Value Inves and CITIGROUP CDR 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 CDR are associated (or correlated) with Partners Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Value Inves has no effect on the direction of CITIGROUP CDR i.e., CITIGROUP CDR and Partners Value go up and down completely randomly.

Pair Corralation between CITIGROUP CDR and Partners Value

Assuming the 90 days trading horizon CITIGROUP CDR is expected to generate 0.67 times more return on investment than Partners Value. However, CITIGROUP CDR is 1.5 times less risky than Partners Value. It trades about 0.4 of its potential returns per unit of risk. Partners Value Investments is currently generating about 0.08 per unit of risk. If you would invest  2,467  in CITIGROUP CDR on April 7, 2025 and sell it today you would earn a total of  1,237  from holding CITIGROUP CDR or generate 50.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

CITIGROUP CDR  vs.  Partners Value Investments

CITIGROUP CDR

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in CITIGROUP CDR are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, CITIGROUP CDR exhibited solid returns over the last few months and may actually be approaching a breakup point.

Partners Value Inves

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Partners Value Investments are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Partners Value sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CITIGROUP CDR and Partners Value

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

The idea behind CITIGROUP CDR and Partners Value Investments 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.