Correlation Between Citigroup and Orbit Garant
Can any of the company-specific risk be diversified away by investing in both Citigroup and Orbit Garant 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 Orbit Garant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Orbit Garant Drilling, you can compare the effects of market volatilities on Citigroup and Orbit Garant 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 Orbit Garant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Orbit Garant.
Diversification Opportunities for Citigroup and Orbit Garant
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Orbit is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Orbit Garant Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbit Garant Drilling 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 Orbit Garant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbit Garant Drilling has no effect on the direction of Citigroup i.e., Citigroup and Orbit Garant go up and down completely randomly.
Pair Corralation between Citigroup and Orbit Garant
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.41 times more return on investment than Orbit Garant. However, Citigroup is 2.47 times less risky than Orbit Garant. It trades about 0.05 of its potential returns per unit of risk. Orbit Garant Drilling is currently generating about -0.07 per unit of risk. If you would invest 9,444 in Citigroup on August 25, 2025 and sell it today you would earn a total of 426.00 from holding Citigroup or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Orbit Garant Drilling
Performance |
| Timeline |
| Citigroup |
| Orbit Garant Drilling |
Citigroup and Orbit Garant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Orbit Garant
The main advantage of trading using opposite Citigroup and Orbit Garant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Orbit Garant 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 Orbit Garant will offset losses from the drop in Orbit Garant's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. Royal Bank of | Citigroup vs. Canadian Imperial Bank |
| Orbit Garant vs. Kavango Resources Plc | Orbit Garant vs. Nevada King Gold | Orbit Garant vs. Zinnwald Lithium Plc | Orbit Garant vs. Wesizwe Platinum Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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