Correlation Between Citigroup and Omega Flex
Can any of the company-specific risk be diversified away by investing in both Citigroup and Omega Flex 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 Omega Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Omega Flex, you can compare the effects of market volatilities on Citigroup and Omega Flex 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 Omega Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Omega Flex.
Diversification Opportunities for Citigroup and Omega Flex
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Omega is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Omega Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omega Flex 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 Omega Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omega Flex has no effect on the direction of Citigroup i.e., Citigroup and Omega Flex go up and down completely randomly.
Pair Corralation between Citigroup and Omega Flex
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.74 times more return on investment than Omega Flex. However, Citigroup is 1.35 times less risky than Omega Flex. It trades about 0.06 of its potential returns per unit of risk. Omega Flex is currently generating about -0.01 per unit of risk. If you would invest 10,161 in Citigroup on September 2, 2025 and sell it today you would earn a total of 149.00 from holding Citigroup or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. Omega Flex
Performance |
| Timeline |
| Citigroup |
| Omega Flex |
Citigroup and Omega Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Omega Flex
The main advantage of trading using opposite Citigroup and Omega Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Omega Flex 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 Omega Flex will offset losses from the drop in Omega Flex's long position.| Citigroup vs. Canadian Imperial Bank | Citigroup vs. KB Financial Group | Citigroup vs. Nu Holdings | Citigroup vs. Royal Bank of |
| Omega Flex vs. Asure Software | Omega Flex vs. Mitsui Chemicals ADR | Omega Flex vs. ISE Chemicals | Omega Flex vs. Jinxin Technology Holding |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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