Correlation Between Citigroup and Gencor Industries
Can any of the company-specific risk be diversified away by investing in both Citigroup and Gencor Industries 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 Gencor Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Gencor Industries, you can compare the effects of market volatilities on Citigroup and Gencor Industries 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 Gencor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Gencor Industries.
Diversification Opportunities for Citigroup and Gencor Industries
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Gencor is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Gencor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gencor Industries 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 Gencor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gencor Industries has no effect on the direction of Citigroup i.e., Citigroup and Gencor Industries go up and down completely randomly.
Pair Corralation between Citigroup and Gencor Industries
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.68 times more return on investment than Gencor Industries. However, Citigroup is 1.47 times less risky than Gencor Industries. It trades about 0.05 of its potential returns per unit of risk. Gencor Industries is currently generating about -0.08 per unit of risk. If you would invest 9,493 in Citigroup on July 27, 2025 and sell it today you would earn a total of 385.00 from holding Citigroup or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Gencor Industries
Performance |
| Timeline |
| Citigroup |
| Gencor Industries |
Citigroup and Gencor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Gencor Industries
The main advantage of trading using opposite Citigroup and Gencor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Gencor Industries 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 Gencor Industries will offset losses from the drop in Gencor Industries' long position.| Citigroup vs. Mitsubishi UFJ Financial | Citigroup vs. Royal Bank of | Citigroup vs. Bank of America | Citigroup vs. Wells Fargo |
| Gencor Industries vs. Innovative Solutions and | Gencor Industries vs. Perma Pipe International Holdings | Gencor Industries vs. Diana Shipping | Gencor Industries vs. Alta Equipment Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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