Correlation Between Titanium Transportation and CITIGROUP CDR

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

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

Diversification Opportunities for Titanium Transportation and CITIGROUP CDR

-0.65

Correlation Coefficient

Titanium Transportation  CITIGROUP CDR

Excellent diversification

The 3 months correlation between Titanium and CITIGROUP is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Titanium Transportation Group and CITIGROUP CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP CDR and Titanium Transportation 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 Titanium Transportation Group are associated (or correlated) with CITIGROUP CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP CDR has no effect on the direction of Titanium Transportation i.e., Titanium Transportation and CITIGROUP CDR go up and down completely randomly.

Pair Corralation between Titanium Transportation and CITIGROUP CDR

Assuming the 90 days trading horizon Titanium Transportation Group is expected to under-perform the CITIGROUP CDR. In addition to that, Titanium Transportation is 1.24 times more volatile than CITIGROUP CDR. It trades about -0.11 of its total potential returns per unit of risk. CITIGROUP CDR is currently generating about 0.07 per unit of volatility. If you would invest  3,894  in CITIGROUP CDR on July 21, 2025 and sell it today you would earn a total of  159.00  from holding CITIGROUP CDR or generate 4.08% return on investment over 90 days.

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

Titanium Transportation Group  vs.  CITIGROUP CDR

Titanium Transportation

Risk-Adjusted Performance

Weakest

Over the last 90 days Titanium Transportation Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

CITIGROUP CDR

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in CITIGROUP CDR are ranked lower than 4 (%) 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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Titanium Transportation and CITIGROUP CDR

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

The idea behind Titanium Transportation Group and CITIGROUP CDR 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..