Correlation Between ON Semiconductor and Citigroup
Can any of the company-specific risk be diversified away by investing in both ON Semiconductor 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 ON Semiconductor and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ON Semiconductor and Citigroup, you can compare the effects of market volatilities on ON Semiconductor 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 ON Semiconductor with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of ON Semiconductor and Citigroup.
Diversification Opportunities for ON Semiconductor and Citigroup
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between O2NS34 and Citigroup is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding ON Semiconductor and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and ON Semiconductor 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 ON Semiconductor 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 ON Semiconductor i.e., ON Semiconductor and Citigroup go up and down completely randomly.
Pair Corralation between ON Semiconductor and Citigroup
Assuming the 90 days trading horizon ON Semiconductor is expected to generate 1.1 times more return on investment than Citigroup. However, ON Semiconductor is 1.1 times more volatile than Citigroup. It trades about 0.29 of its potential returns per unit of risk. Citigroup is currently generating about 0.07 per unit of risk. If you would invest 3,052 in ON Semiconductor on November 19, 2025 and sell it today you would earn a total of 1,560 from holding ON Semiconductor or generate 51.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.31% |
| Values | Daily Returns |
ON Semiconductor vs. Citigroup
Performance |
| Timeline |
| ON Semiconductor |
| Citigroup |
ON Semiconductor and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ON Semiconductor and Citigroup
The main advantage of trading using opposite ON Semiconductor and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ON Semiconductor 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.| ON Semiconductor vs. Taiwan Semiconductor Manufacturing | ON Semiconductor vs. Apple Inc | ON Semiconductor vs. Alibaba Group Holding | ON Semiconductor vs. Microsoft |
| Citigroup vs. Unifique Telecomunicaes SA | Citigroup vs. Broadridge Financial Solutions | Citigroup vs. Metalrgica Riosulense SA | Citigroup vs. PENN Entertainment |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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