Correlation Between CITIGROUP CDR and Q2 Metals

Can any of the company-specific risk be diversified away by investing in both CITIGROUP CDR and Q2 Metals 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 Q2 Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CITIGROUP CDR and Q2 Metals Corp, you can compare the effects of market volatilities on CITIGROUP CDR and Q2 Metals 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 Q2 Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIGROUP CDR and Q2 Metals.

Diversification Opportunities for CITIGROUP CDR and Q2 Metals

0.56

Correlation Coefficient

CITIGROUP CDR  Q2 Metals

Very weak diversification

The 3 months correlation between CITIGROUP and QTWO is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP CDR and Q2 Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q2 Metals Corp 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 Q2 Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q2 Metals Corp has no effect on the direction of CITIGROUP CDR i.e., CITIGROUP CDR and Q2 Metals go up and down completely randomly.

Pair Corralation between CITIGROUP CDR and Q2 Metals

Assuming the 90 days trading horizon CITIGROUP CDR is expected to generate 15.08 times less return on investment than Q2 Metals. But when comparing it to its historical volatility, CITIGROUP CDR is 3.15 times less risky than Q2 Metals. It trades about 0.01 of its potential returns per unit of risk. Q2 Metals Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  77.00  in Q2 Metals Corp on July 25, 2025 and sell it today you would earn a total of  11.00  from holding Q2 Metals Corp or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

CITIGROUP CDR  vs.  Q2 Metals Corp

CITIGROUP CDR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CITIGROUP CDR are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, CITIGROUP CDR is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Q2 Metals Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Q2 Metals Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Q2 Metals showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CITIGROUP CDR and Q2 Metals

The main advantage of trading using opposite CITIGROUP CDR and Q2 Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIGROUP CDR position performs unexpectedly, Q2 Metals 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 Q2 Metals will offset losses from the drop in Q2 Metals' long position.

The idea behind CITIGROUP CDR and Q2 Metals 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.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.