Correlation Between Chevron Corp and CITIGROUP
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By analyzing existing cross correlation between Chevron Corp and CITIGROUP INC 33, you can compare the effects of market volatilities on Chevron Corp and CITIGROUP 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 Chevron Corp with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and CITIGROUP.
Diversification Opportunities for Chevron Corp and CITIGROUP
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chevron and CITIGROUP is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and CITIGROUP INC 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 33 and Chevron Corp 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 Chevron Corp are associated (or correlated) with CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 33 has no effect on the direction of Chevron Corp i.e., Chevron Corp and CITIGROUP go up and down completely randomly.
Pair Corralation between Chevron Corp and CITIGROUP
Considering the 90-day investment horizon Chevron Corp is expected to generate 1.75 times more return on investment than CITIGROUP. However, Chevron Corp is 1.75 times more volatile than CITIGROUP INC 33. It trades about 0.35 of its potential returns per unit of risk. CITIGROUP INC 33 is currently generating about -0.2 per unit of risk. If you would invest 14,893 in Chevron Corp on August 25, 2024 and sell it today you would earn a total of 1,343 from holding Chevron Corp or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chevron Corp vs. CITIGROUP INC 33
Performance |
| Timeline |
| Chevron Corp |
| CITIGROUP INC 33 |
Chevron Corp and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and CITIGROUP
The main advantage of trading using opposite Chevron Corp and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Chevron Corp vs. Eshallgo Class A | Chevron Corp vs. Amtech Systems | Chevron Corp vs. Gold Fields Ltd | Chevron Corp vs. Aegean Airlines SA |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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