Correlation Between Ur Energy and CITIGROUP CDR

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

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

Diversification Opportunities for Ur Energy and CITIGROUP CDR

0.72

Correlation Coefficient

Ur Energy  CITIGROUP CDR

Poor diversification

The 3 months correlation between URE and CITIGROUP is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ur Energy and CITIGROUP CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP CDR and Ur Energy 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 Ur Energy 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 Ur Energy i.e., Ur Energy and CITIGROUP CDR go up and down completely randomly.

Pair Corralation between Ur Energy and CITIGROUP CDR

Assuming the 90 days trading horizon Ur Energy is expected to generate 1.69 times less return on investment than CITIGROUP CDR. In addition to that, Ur Energy is 1.99 times more volatile than CITIGROUP CDR. It trades about 0.02 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  1,874  in CITIGROUP CDR on March 24, 2025 and sell it today you would earn a total of  1,424  from holding CITIGROUP CDR or generate 75.99% return on investment over 90 days.

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

Ur Energy  vs.  CITIGROUP CDR

Ur Energy

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ur Energy are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Ur Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

CITIGROUP CDR

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CITIGROUP CDR are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, CITIGROUP CDR may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Ur Energy and CITIGROUP CDR

The main advantage of trading using opposite Ur Energy and CITIGROUP CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ur Energy 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 Ur Energy 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.