Correlation Between Citigroup and Albertsons Companies
Can any of the company-specific risk be diversified away by investing in both Citigroup and Albertsons Companies 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 Albertsons Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Albertsons Companies, you can compare the effects of market volatilities on Citigroup and Albertsons Companies 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 Albertsons Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Albertsons Companies.
Diversification Opportunities for Citigroup and Albertsons Companies
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Albertsons is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Albertsons Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albertsons Companies 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 Albertsons Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albertsons Companies has no effect on the direction of Citigroup i.e., Citigroup and Albertsons Companies go up and down completely randomly.
Pair Corralation between Citigroup and Albertsons Companies
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.97 times more return on investment than Albertsons Companies. However, Citigroup is 1.03 times less risky than Albertsons Companies. It trades about 0.23 of its potential returns per unit of risk. Albertsons Companies is currently generating about -0.1 per unit of risk. If you would invest 7,766 in Citigroup on June 8, 2025 and sell it today you would earn a total of 1,774 from holding Citigroup or generate 22.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Albertsons Companies
Performance |
| Timeline |
| Citigroup |
| Albertsons Companies |
Citigroup and Albertsons Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Albertsons Companies
The main advantage of trading using opposite Citigroup and Albertsons Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Albertsons Companies 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 Albertsons Companies will offset losses from the drop in Albertsons Companies' long position.The idea behind Citigroup and Albertsons Companies 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.| Albertsons Companies vs. Kroger Company | Albertsons Companies vs. Grocery Outlet Holding | Albertsons Companies vs. Sprouts Farmers Market | Albertsons Companies vs. Weis Markets |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |