Correlation Between Citigroup and PVH Corp
Can any of the company-specific risk be diversified away by investing in both Citigroup and PVH Corp 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 and PVH Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PVH Corp, you can compare the effects of market volatilities on Citigroup and PVH Corp 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 with a short position of PVH Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PVH Corp.
Diversification Opportunities for Citigroup and PVH Corp
Good diversification
The 3 months correlation between Citigroup and PVH is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PVH Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVH Corp and Citigroup 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 are associated (or correlated) with PVH Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVH Corp has no effect on the direction of Citigroup i.e., Citigroup and PVH Corp go up and down completely randomly.
Pair Corralation between Citigroup and PVH Corp
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.54 times more return on investment than PVH Corp. However, Citigroup is 1.84 times less risky than PVH Corp. It trades about 0.45 of its potential returns per unit of risk. PVH Corp is currently generating about -0.24 per unit of risk. If you would invest 6,994 in Citigroup on November 2, 2024 and sell it today you would earn a total of 1,192 from holding Citigroup or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. PVH Corp
Performance |
| Timeline |
| Citigroup |
| PVH Corp |
Citigroup and PVH Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PVH Corp
The main advantage of trading using opposite Citigroup and PVH Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PVH Corp 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 PVH Corp will offset losses from the drop in PVH Corp's long position.| Citigroup vs. Royal Bank of | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Canadian Imperial Bank |
| PVH Corp vs. Roebuck Food Group | PVH Corp vs. Rheinmetall AG | PVH Corp vs. Bell Food Group | PVH Corp vs. Hilton Food 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |