Correlation Between CITIGROUP CDR and Visa
Can any of the company-specific risk be diversified away by investing in both CITIGROUP CDR and Visa 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 CDR and Visa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITIGROUP CDR and Visa Inc CDR, you can compare the effects of market volatilities on CITIGROUP CDR and Visa 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 CDR with a short position of Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIGROUP CDR and Visa.
Diversification Opportunities for CITIGROUP CDR and Visa
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CITIGROUP and Visa is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP CDR and Visa Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Inc CDR and CITIGROUP CDR 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 CDR are associated (or correlated) with Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Inc CDR has no effect on the direction of CITIGROUP CDR i.e., CITIGROUP CDR and Visa go up and down completely randomly.
Pair Corralation between CITIGROUP CDR and Visa
Assuming the 90 days trading horizon CITIGROUP CDR is expected to generate 1.44 times more return on investment than Visa. However, CITIGROUP CDR is 1.44 times more volatile than Visa Inc CDR. It trades about 0.06 of its potential returns per unit of risk. Visa Inc CDR is currently generating about -0.12 per unit of risk. If you would invest 3,963 in CITIGROUP CDR on August 22, 2025 and sell it today you would earn a total of 195.00 from holding CITIGROUP CDR or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIGROUP CDR vs. Visa Inc CDR
Performance |
| Timeline |
| CITIGROUP CDR |
| Visa Inc CDR |
CITIGROUP CDR and Visa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIGROUP CDR and Visa
The main advantage of trading using opposite CITIGROUP CDR and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIGROUP CDR position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.| CITIGROUP CDR vs. Bausch Health Companies | CITIGROUP CDR vs. Reliq Health Technologies | CITIGROUP CDR vs. Algonquin Power Utilities | CITIGROUP CDR vs. Magna Mining |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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