Correlation Between Barclays Plc and Citigroup

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Barclays Plc 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 Barclays Plc and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Plc ADR and Citigroup, you can compare the effects of market volatilities on Barclays Plc 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 Barclays Plc with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Plc and Citigroup.

Diversification Opportunities for Barclays Plc and Citigroup

0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Barclays and Citigroup is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Plc ADR and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Barclays Plc 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 Barclays Plc ADR 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 Barclays Plc i.e., Barclays Plc and Citigroup go up and down completely randomly.

Pair Corralation between Barclays Plc and Citigroup

Considering the 90-day investment horizon Barclays Plc ADR is expected to under-perform the Citigroup. In addition to that, Barclays Plc is 1.36 times more volatile than Citigroup. It trades about -0.38 of its total potential returns per unit of risk. Citigroup is currently generating about -0.39 per unit of volatility. If you would invest  4,881  in Citigroup on July 2, 2022 and sell it today you would lose (642.00)  from holding Citigroup or give up 13.15% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Barclays Plc ADR  vs.  Citigroup

 Performance (%) 
       Timeline  
Barclays Plc ADR 
Barclays Performance
0 of 100
Over the last 90 days Barclays Plc ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Stock's fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Barclays Price Channel

Citigroup 
Citigroup Performance
0 of 100
Over the last 90 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Citigroup Price Channel

Barclays Plc and Citigroup Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Barclays Plc and Citigroup

The main advantage of trading using opposite Barclays Plc and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Plc 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.
Barclays Plc vs. Amazon Inc
The idea behind Barclays Plc ADR and Citigroup pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Citigroup vs. Amazon Inc
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go