Correlation Between Citigroup and Axfood AB
Can any of the company-specific risk be diversified away by investing in both Citigroup and Axfood AB 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 and Axfood AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Axfood AB, you can compare the effects of market volatilities on Citigroup and Axfood AB 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 with a short position of Axfood AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Axfood AB.
Diversification Opportunities for Citigroup and Axfood AB
Very good diversification
The 3 months correlation between Citigroup and Axfood is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Axfood AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axfood AB and Citigroup 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 are associated (or correlated) with Axfood AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axfood AB has no effect on the direction of Citigroup i.e., Citigroup and Axfood AB go up and down completely randomly.
Pair Corralation between Citigroup and Axfood AB
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.34 times more return on investment than Axfood AB. However, Citigroup is 1.34 times more volatile than Axfood AB. It trades about 0.06 of its potential returns per unit of risk. Axfood AB is currently generating about -0.1 per unit of risk. If you would invest 9,600 in Citigroup on August 29, 2025 and sell it today you would earn a total of 517.00 from holding Citigroup or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Citigroup vs. Axfood AB
Performance |
| Timeline |
| Citigroup |
| Axfood AB |
Citigroup and Axfood AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Axfood AB
The main advantage of trading using opposite Citigroup and Axfood AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Axfood AB 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 Axfood AB will offset losses from the drop in Axfood AB's long position.| Citigroup vs. Guangdong Investment Limited | Citigroup vs. Puhui Wealth Investment | Citigroup vs. Origin Investment Corp | Citigroup vs. Compass Diversified Holdings |
| Axfood AB vs. Associated British Foods | Axfood AB vs. MoneysupermarketCom Group PLC | Axfood AB vs. Silvercorp Metals | Axfood AB vs. Critical Metals Plc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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