Correlation Between Citigroup and LandBridge Company

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Can any of the company-specific risk be diversified away by investing in both Citigroup and LandBridge Company 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 LandBridge Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and LandBridge Company LLC, you can compare the effects of market volatilities on Citigroup and LandBridge Company 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 LandBridge Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and LandBridge Company.

Diversification Opportunities for Citigroup and LandBridge Company

-0.11
  Correlation Coefficient

Good diversification

The 3 months correlation between Citigroup and LandBridge is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and LandBridge Company LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LandBridge Company 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 LandBridge Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LandBridge Company has no effect on the direction of Citigroup i.e., Citigroup and LandBridge Company go up and down completely randomly.

Pair Corralation between Citigroup and LandBridge Company

Taking into account the 90-day investment horizon Citigroup is expected to generate 5.02 times less return on investment than LandBridge Company. But when comparing it to its historical volatility, Citigroup is 2.35 times less risky than LandBridge Company. It trades about 0.03 of its potential returns per unit of risk. LandBridge Company LLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  5,477  in LandBridge Company LLC on July 26, 2025 and sell it today you would earn a total of  501.00  from holding LandBridge Company LLC or generate 9.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Citigroup  vs.  LandBridge Company LLC

 Performance 
       Timeline  
Citigroup 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
LandBridge Company 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in LandBridge Company LLC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental drivers, LandBridge Company sustained solid returns over the last few months and may actually be approaching a breakup point.

Citigroup and LandBridge Company Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Citigroup and LandBridge Company

The main advantage of trading using opposite Citigroup and LandBridge Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, LandBridge Company 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 LandBridge Company will offset losses from the drop in LandBridge Company's long position.
The idea behind Citigroup and LandBridge Company LLC 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.
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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