Correlation Between CITIGROUP CDR and Storage Vault

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

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

Diversification Opportunities for CITIGROUP CDR and Storage Vault

0.8

Correlation Coefficient

CITIGROUP CDR  Storage Vault

Very poor diversification

The 3 months correlation between CITIGROUP and Storage is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP CDR and Storage Vault Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storage Vault Canada 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 Storage Vault. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storage Vault Canada has no effect on the direction of CITIGROUP CDR i.e., CITIGROUP CDR and Storage Vault go up and down completely randomly.

Pair Corralation between CITIGROUP CDR and Storage Vault

Assuming the 90 days trading horizon CITIGROUP CDR is expected to generate 0.84 times more return on investment than Storage Vault. However, CITIGROUP CDR is 1.18 times less risky than Storage Vault. It trades about 0.31 of its potential returns per unit of risk. Storage Vault Canada is currently generating about 0.11 per unit of risk. If you would invest  2,694  in CITIGROUP CDR on April 15, 2025 and sell it today you would earn a total of  952.00  from holding CITIGROUP CDR or generate 35.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

CITIGROUP CDR  vs.  Storage Vault Canada

CITIGROUP CDR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CITIGROUP CDR are ranked lower than 24 (%) 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.

Storage Vault Canada

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Storage Vault Canada are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Storage Vault displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CITIGROUP CDR and Storage Vault

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

The idea behind CITIGROUP CDR and Storage Vault Canada 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.