Correlation Between Citigroup and SpartanNash
Can any of the company-specific risk be diversified away by investing in both Citigroup and SpartanNash 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 SpartanNash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and SpartanNash Co, you can compare the effects of market volatilities on Citigroup and SpartanNash 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 SpartanNash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and SpartanNash.
Diversification Opportunities for Citigroup and SpartanNash
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and SpartanNash is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and SpartanNash Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpartanNash 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 SpartanNash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpartanNash has no effect on the direction of Citigroup i.e., Citigroup and SpartanNash go up and down completely randomly.
Pair Corralation between Citigroup and SpartanNash
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.68 times more return on investment than SpartanNash. However, Citigroup is 4.68 times more volatile than SpartanNash Co. It trades about 0.17 of its potential returns per unit of risk. SpartanNash Co is currently generating about 0.14 per unit of risk. If you would invest 8,501 in Citigroup on July 8, 2025 and sell it today you would earn a total of 1,273 from holding Citigroup or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 84.38% |
| Values | Daily Returns |
Citigroup vs. SpartanNash Co
Performance |
| Timeline |
| Citigroup |
| SpartanNash |
Risk-Adjusted Performance
Fair
Weak | Strong |
Citigroup and SpartanNash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and SpartanNash
The main advantage of trading using opposite Citigroup and SpartanNash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, SpartanNash 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 SpartanNash will offset losses from the drop in SpartanNash's long position.| Citigroup vs. Bank of America | Citigroup vs. Wells Fargo | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Toronto Dominion Bank |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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