Correlation Between Citigroup and Trivago NV
Can any of the company-specific risk be diversified away by investing in both Citigroup and Trivago NV 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 Trivago NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Trivago NV, you can compare the effects of market volatilities on Citigroup and Trivago NV 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 Trivago NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Trivago NV.
Diversification Opportunities for Citigroup and Trivago NV
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Trivago is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Trivago NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trivago NV 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 Trivago NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trivago NV has no effect on the direction of Citigroup i.e., Citigroup and Trivago NV go up and down completely randomly.
Pair Corralation between Citigroup and Trivago NV
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.69 times more return on investment than Trivago NV. However, Citigroup is 1.45 times less risky than Trivago NV. It trades about 0.06 of its potential returns per unit of risk. Trivago NV is currently generating about -0.12 per unit of risk. If you would invest 9,625 in Citigroup on August 28, 2025 and sell it today you would earn a total of 492.00 from holding Citigroup or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Trivago NV
Performance |
| Timeline |
| Citigroup |
| Trivago NV |
Citigroup and Trivago NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Trivago NV
The main advantage of trading using opposite Citigroup and Trivago NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Trivago NV 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 Trivago NV will offset losses from the drop in Trivago NV's long position.| Citigroup vs. Orthometrix | Citigroup vs. Beazer Homes USA | Citigroup vs. Bangkok Dusit Medical | Citigroup vs. KB Home |
| Trivago NV vs. Stewart Information Services | Trivago NV vs. General Datacomm Industries | Trivago NV vs. Pure Storage | Trivago NV vs. Klegg Electronics |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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