Correlation Between Citigroup and PEPSICO
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By analyzing existing cross correlation between Citigroup and PEPSICO INC, you can compare the effects of market volatilities on Citigroup and PEPSICO 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 PEPSICO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PEPSICO.
Diversification Opportunities for Citigroup and PEPSICO
Good diversification
The 3 months correlation between Citigroup and PEPSICO is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PEPSICO INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEPSICO INC 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 PEPSICO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEPSICO INC has no effect on the direction of Citigroup i.e., Citigroup and PEPSICO go up and down completely randomly.
Pair Corralation between Citigroup and PEPSICO
Taking into account the 90-day investment horizon Citigroup is expected to generate 56.58 times less return on investment than PEPSICO. But when comparing it to its historical volatility, Citigroup is 53.76 times less risky than PEPSICO. It trades about 0.07 of its potential returns per unit of risk. PEPSICO INC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8,741 in PEPSICO INC on August 28, 2024 and sell it today you would lose (949.00) from holding PEPSICO INC or give up 10.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.53% |
| Values | Daily Returns |
Citigroup vs. PEPSICO INC
Performance |
| Timeline |
| Citigroup |
| PEPSICO INC |
Citigroup and PEPSICO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PEPSICO
The main advantage of trading using opposite Citigroup and PEPSICO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PEPSICO 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 PEPSICO will offset losses from the drop in PEPSICO's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| PEPSICO vs. Estee Lauder Companies | PEPSICO vs. Steven Madden | PEPSICO vs. Hillman Solutions Corp | PEPSICO vs. Papaya Growth Opportunity |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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