Correlation Between Net Lease and Citigroup
Can any of the company-specific risk be diversified away by investing in both Net Lease and Citigroup 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 Net Lease and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Net Lease Office and Citigroup, you can compare the effects of market volatilities on Net Lease and Citigroup 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 Net Lease with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Net Lease and Citigroup.
Diversification Opportunities for Net Lease and Citigroup
Modest diversification
The 3 months correlation between Net and Citigroup is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Net Lease Office and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Net Lease 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 Net Lease Office are associated (or correlated) with Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Net Lease i.e., Net Lease and Citigroup go up and down completely randomly.
Pair Corralation between Net Lease and Citigroup
Given the investment horizon of 90 days Net Lease is expected to generate 6.38 times less return on investment than Citigroup. But when comparing it to its historical volatility, Net Lease Office is 1.59 times less risky than Citigroup. It trades about 0.03 of its potential returns per unit of risk. Citigroup is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,422 in Citigroup on September 2, 2025 and sell it today you would earn a total of 938.00 from holding Citigroup or generate 9.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Net Lease Office vs. Citigroup
Performance |
| Timeline |
| Net Lease Office |
| Citigroup |
Net Lease and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Net Lease and Citigroup
The main advantage of trading using opposite Net Lease and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Net Lease position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| Net Lease vs. Mount Gibson Iron | Net Lease vs. FDG Electric Vehicles | Net Lease vs. Tianjin Capital Environmental | Net Lease vs. Space Communication |
| Citigroup vs. TeraForce Technology | Citigroup vs. Infinite Technology Corp | Citigroup vs. American Transportation Holdings | Citigroup vs. Vishay Intertechnology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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