Correlation Between Citigroup and Rand Capital
Can any of the company-specific risk be diversified away by investing in both Citigroup and Rand Capital 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 Rand Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Rand Capital Corp, you can compare the effects of market volatilities on Citigroup and Rand Capital 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 Rand Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Rand Capital.
Diversification Opportunities for Citigroup and Rand Capital
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Rand is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Rand Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rand Capital Corp 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 Rand Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rand Capital Corp has no effect on the direction of Citigroup i.e., Citigroup and Rand Capital go up and down completely randomly.
Pair Corralation between Citigroup and Rand Capital
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.54 times more return on investment than Rand Capital. However, Citigroup is 1.85 times less risky than Rand Capital. It trades about 0.04 of its potential returns per unit of risk. Rand Capital Corp is currently generating about -0.14 per unit of risk. If you would invest 9,536 in Citigroup on July 23, 2025 and sell it today you would earn a total of 289.00 from holding Citigroup or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Citigroup vs. Rand Capital Corp
Performance |
| Timeline |
| Citigroup |
| Rand Capital Corp |
Citigroup and Rand Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Rand Capital
The main advantage of trading using opposite Citigroup and Rand Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Rand Capital 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 Rand Capital will offset losses from the drop in Rand Capital's long position.| Citigroup vs. Mitsubishi UFJ Financial | Citigroup vs. Royal Bank of | Citigroup vs. Bank of America | Citigroup vs. Wells Fargo |
| Rand Capital vs. Investcorp Credit Management | Rand Capital vs. Marygold Companies | Rand Capital vs. Black Titan | Rand Capital vs. SLMT |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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