Correlation Between Citigroup and RAYTHEON
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By analyzing existing cross correlation between Citigroup and RAYTHEON TECHNOLOGIES PORATION, you can compare the effects of market volatilities on Citigroup and RAYTHEON 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 RAYTHEON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and RAYTHEON.
Diversification Opportunities for Citigroup and RAYTHEON
Excellent diversification
The 3 months correlation between Citigroup and RAYTHEON is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and RAYTHEON TECHNOLOGIES PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RAYTHEON TECHNOLOGIES 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 RAYTHEON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RAYTHEON TECHNOLOGIES has no effect on the direction of Citigroup i.e., Citigroup and RAYTHEON go up and down completely randomly.
Pair Corralation between Citigroup and RAYTHEON
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.55 times more return on investment than RAYTHEON. However, Citigroup is 3.55 times more volatile than RAYTHEON TECHNOLOGIES PORATION. It trades about 0.08 of its potential returns per unit of risk. RAYTHEON TECHNOLOGIES PORATION is currently generating about -0.01 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.93% |
| Values | Daily Returns |
Citigroup vs. RAYTHEON TECHNOLOGIES PORATION
Performance |
| Timeline |
| Citigroup |
| RAYTHEON TECHNOLOGIES |
Citigroup and RAYTHEON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and RAYTHEON
The main advantage of trading using opposite Citigroup and RAYTHEON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, RAYTHEON 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 RAYTHEON will offset losses from the drop in RAYTHEON's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| RAYTHEON vs. Cementos Pacasmayo SAA | RAYTHEON vs. Summit Materials | RAYTHEON vs. 51Talk Online Education | RAYTHEON vs. Marchex |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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