Correlation Between Citigroup and JOHNSON
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By analyzing existing cross correlation between Citigroup and JOHNSON JOHNSON, you can compare the effects of market volatilities on Citigroup and JOHNSON 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 JOHNSON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and JOHNSON.
Diversification Opportunities for Citigroup and JOHNSON
Very good diversification
The 3 months correlation between Citigroup and JOHNSON is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and JOHNSON JOHNSON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JOHNSON JOHNSON 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 JOHNSON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JOHNSON JOHNSON has no effect on the direction of Citigroup i.e., Citigroup and JOHNSON go up and down completely randomly.
Pair Corralation between Citigroup and JOHNSON
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.57 times more return on investment than JOHNSON. However, Citigroup is 3.57 times more volatile than JOHNSON JOHNSON. It trades about 0.07 of its potential returns per unit of risk. JOHNSON JOHNSON is currently generating about 0.0 per unit of risk. If you would invest 4,145 in Citigroup on August 27, 2024 and sell it today you would earn a total of 2,839 from holding Citigroup or generate 68.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
Citigroup vs. JOHNSON JOHNSON
Performance |
| Timeline |
| Citigroup |
| JOHNSON JOHNSON |
Citigroup and JOHNSON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and JOHNSON
The main advantage of trading using opposite Citigroup and JOHNSON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, JOHNSON 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 JOHNSON will offset losses from the drop in JOHNSON's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| JOHNSON vs. Nike Inc | JOHNSON vs. Bright Scholar Education | JOHNSON vs. Saia Inc | JOHNSON vs. Lakeland Industries |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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