Correlation Between CITIGROUP CDR and Rubellite Energy

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

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

Diversification Opportunities for CITIGROUP CDR and Rubellite Energy

0.69

Correlation Coefficient

CITIGROUP CDR  Rubellite Energy

Poor diversification

The 3 months correlation between CITIGROUP and Rubellite is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP CDR and Rubellite Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubellite Energy 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 Rubellite Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubellite Energy has no effect on the direction of CITIGROUP CDR i.e., CITIGROUP CDR and Rubellite Energy go up and down completely randomly.

Pair Corralation between CITIGROUP CDR and Rubellite Energy

Assuming the 90 days trading horizon CITIGROUP CDR is expected to generate 0.56 times more return on investment than Rubellite Energy. However, CITIGROUP CDR is 1.78 times less risky than Rubellite Energy. It trades about 0.36 of its potential returns per unit of risk. Rubellite Energy is currently generating about 0.06 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 Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

CITIGROUP CDR  vs.  Rubellite Energy

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.

Rubellite Energy

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Rubellite Energy are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Rubellite Energy may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CITIGROUP CDR and Rubellite Energy

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

The idea behind CITIGROUP CDR and Rubellite Energy 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.

Check out your portfolio center.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.