Correlation Between Johnson Johnson and CITIGROUP
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By analyzing existing cross correlation between Johnson Johnson and CITIGROUP INC, you can compare the effects of market volatilities on Johnson Johnson 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 Johnson Johnson with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and CITIGROUP.
Diversification Opportunities for Johnson Johnson and CITIGROUP
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Johnson and CITIGROUP is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and CITIGROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC and Johnson Johnson 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 Johnson Johnson 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 has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and CITIGROUP go up and down completely randomly.
Pair Corralation between Johnson Johnson and CITIGROUP
Considering the 90-day investment horizon Johnson Johnson is expected to generate 1.42 times more return on investment than CITIGROUP. However, Johnson Johnson is 1.42 times more volatile than CITIGROUP INC. It trades about 0.01 of its potential returns per unit of risk. CITIGROUP INC is currently generating about 0.01 per unit of risk. If you would invest 15,276 in Johnson Johnson on September 1, 2024 and sell it today you would earn a total of 225.00 from holding Johnson Johnson or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Johnson Johnson vs. CITIGROUP INC
Performance |
| Timeline |
| Johnson Johnson |
| CITIGROUP INC |
Johnson Johnson and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and CITIGROUP
The main advantage of trading using opposite Johnson Johnson and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson 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.| Johnson Johnson vs. Crinetics Pharmaceuticals | Johnson Johnson vs. Enanta Pharmaceuticals | Johnson Johnson vs. Amicus Therapeutics | Johnson Johnson vs. Connect Biopharma Holdings |
| CITIGROUP vs. AEP TEX INC | CITIGROUP vs. US BANK NATIONAL | CITIGROUP vs. American Express | CITIGROUP vs. Chevron Corp |
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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