Correlation Between Uniserve Communications and CITIGROUP CDR
Can any of the company-specific risk be diversified away by investing in both Uniserve Communications and CITIGROUP CDR 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 Uniserve Communications and CITIGROUP CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniserve Communications Corp and CITIGROUP CDR, you can compare the effects of market volatilities on Uniserve Communications and CITIGROUP CDR 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 Uniserve Communications with a short position of CITIGROUP CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniserve Communications and CITIGROUP CDR.
Diversification Opportunities for Uniserve Communications and CITIGROUP CDR
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uniserve and CITIGROUP is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Uniserve Communications Corp and CITIGROUP CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP CDR and Uniserve Communications 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 Uniserve Communications Corp are associated (or correlated) with CITIGROUP CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP CDR has no effect on the direction of Uniserve Communications i.e., Uniserve Communications and CITIGROUP CDR go up and down completely randomly.
Pair Corralation between Uniserve Communications and CITIGROUP CDR
Assuming the 90 days horizon Uniserve Communications Corp is expected to generate 3.13 times more return on investment than CITIGROUP CDR. However, Uniserve Communications is 3.13 times more volatile than CITIGROUP CDR. It trades about 0.03 of its potential returns per unit of risk. CITIGROUP CDR is currently generating about 0.1 per unit of risk. If you would invest 61.00 in Uniserve Communications Corp on August 30, 2025 and sell it today you would earn a total of 2.00 from holding Uniserve Communications Corp or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniserve Communications Corp vs. CITIGROUP CDR
Performance |
| Timeline |
| Uniserve Communications |
| CITIGROUP CDR |
Uniserve Communications and CITIGROUP CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniserve Communications and CITIGROUP CDR
The main advantage of trading using opposite Uniserve Communications and CITIGROUP CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniserve Communications position performs unexpectedly, CITIGROUP CDR 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 CDR will offset losses from the drop in CITIGROUP CDR's long position.| Uniserve Communications vs. Metalero Mining Corp | Uniserve Communications vs. National Bank of | Uniserve Communications vs. Slate Grocery REIT | Uniserve Communications vs. VersaBank |
| CITIGROUP CDR vs. Hemisphere Energy | CITIGROUP CDR vs. Broadcom CDR | CITIGROUP CDR vs. Queens Road Capital | CITIGROUP CDR vs. Computer Modelling Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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