Correlation Between Citigroup and International Seaways
Can any of the company-specific risk be diversified away by investing in both Citigroup and International Seaways 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 International Seaways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and International Seaways, you can compare the effects of market volatilities on Citigroup and International Seaways 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 International Seaways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and International Seaways.
Diversification Opportunities for Citigroup and International Seaways
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and International is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and International Seaways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Seaways 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 International Seaways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Seaways has no effect on the direction of Citigroup i.e., Citigroup and International Seaways go up and down completely randomly.
Pair Corralation between Citigroup and International Seaways
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.58 times less return on investment than International Seaways. But when comparing it to its historical volatility, Citigroup is 1.31 times less risky than International Seaways. It trades about 0.06 of its potential returns per unit of risk. International Seaways is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,449 in International Seaways on August 28, 2025 and sell it today you would earn a total of 935.00 from holding International Seaways or generate 21.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. International Seaways
Performance |
| Timeline |
| Citigroup |
| International Seaways |
Citigroup and International Seaways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and International Seaways
The main advantage of trading using opposite Citigroup and International Seaways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, International Seaways 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 International Seaways will offset losses from the drop in International Seaways' long position.| Citigroup vs. Orthometrix | Citigroup vs. Beazer Homes USA | Citigroup vs. Bangkok Dusit Medical | Citigroup vs. KB Home |
| International Seaways vs. Eternal Hospitality Group | International Seaways vs. Harmony Gold Mining | International Seaways vs. Union Medical Healthcare | International Seaways vs. Aerofoam Metals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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