Correlation Between Citigroup and PHILIP
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and PHILIP MORRIS INTL, you can compare the effects of market volatilities on Citigroup and PHILIP 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 PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PHILIP.
Diversification Opportunities for Citigroup and PHILIP
Excellent diversification
The 3 months correlation between Citigroup and PHILIP is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PHILIP MORRIS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILIP MORRIS INTL 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 PHILIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILIP MORRIS INTL has no effect on the direction of Citigroup i.e., Citigroup and PHILIP go up and down completely randomly.
Pair Corralation between Citigroup and PHILIP
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.77 times more return on investment than PHILIP. However, Citigroup is 1.77 times more volatile than PHILIP MORRIS INTL. It trades about 0.11 of its potential returns per unit of risk. PHILIP MORRIS INTL is currently generating about 0.0 per unit of risk. If you would invest 4,676 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,411 from holding Citigroup or generate 51.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Citigroup vs. PHILIP MORRIS INTL
Performance |
| Timeline |
| Citigroup |
| PHILIP MORRIS INTL |
Citigroup and PHILIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PHILIP
The main advantage of trading using opposite Citigroup and PHILIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PHILIP 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 PHILIP will offset losses from the drop in PHILIP's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |