Correlation Between CITIGROUP CDR and Q Gold

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

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

Diversification Opportunities for CITIGROUP CDR and Q Gold

-0.75

Correlation Coefficient

CITIGROUP CDR  Q Gold

Pay attention - limited upside

The 3 months correlation between CITIGROUP and QGR is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP CDR and Q Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q Gold Resources 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 Q Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q Gold Resources has no effect on the direction of CITIGROUP CDR i.e., CITIGROUP CDR and Q Gold go up and down completely randomly.

Pair Corralation between CITIGROUP CDR and Q Gold

Assuming the 90 days trading horizon CITIGROUP CDR is expected to generate 0.19 times more return on investment than Q Gold. However, CITIGROUP CDR is 5.16 times less risky than Q Gold. It trades about 0.36 of its potential returns per unit of risk. Q Gold Resources is currently generating about -0.01 per unit of risk. If you would invest  2,776  in CITIGROUP CDR on April 23, 2025 and sell it today you would earn a total of  1,114  from holding CITIGROUP CDR or generate 40.13% return on investment over 90 days.

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

CITIGROUP CDR  vs.  Q Gold Resources

CITIGROUP CDR

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in CITIGROUP CDR are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, CITIGROUP CDR exhibited solid returns over the last few months and may actually be approaching a breakup point.

Q Gold Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Q Gold Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Q Gold is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with CITIGROUP CDR and Q Gold

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

The idea behind CITIGROUP CDR and Q Gold Resources 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.