Correlation Between Monster Beverage and CITIGROUP
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By analyzing existing cross correlation between Monster Beverage Corp and CITIGROUP INC 55, you can compare the effects of market volatilities on Monster Beverage 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 Monster Beverage with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and CITIGROUP.
Diversification Opportunities for Monster Beverage and CITIGROUP
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monster and CITIGROUP is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp and CITIGROUP INC 55 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 55 and Monster Beverage 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 Monster Beverage 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 55 has no effect on the direction of Monster Beverage i.e., Monster Beverage and CITIGROUP go up and down completely randomly.
Pair Corralation between Monster Beverage and CITIGROUP
Given the investment horizon of 90 days Monster Beverage Corp is expected to generate 3.58 times more return on investment than CITIGROUP. However, Monster Beverage is 3.58 times more volatile than CITIGROUP INC 55. It trades about 0.01 of its potential returns per unit of risk. CITIGROUP INC 55 is currently generating about -0.01 per unit of risk. If you would invest 5,041 in Monster Beverage Corp on September 12, 2024 and sell it today you would earn a total of 260.00 from holding Monster Beverage Corp or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Monster Beverage Corp vs. CITIGROUP INC 55
Performance |
| Timeline |
| Monster Beverage Corp |
| CITIGROUP INC 55 |
Monster Beverage and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monster Beverage and CITIGROUP
The main advantage of trading using opposite Monster Beverage and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage 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.| Monster Beverage vs. Vita Coco | Monster Beverage vs. PepsiCo | Monster Beverage vs. The Coca Cola | Monster Beverage vs. Coca Cola Femsa SAB |
| CITIGROUP vs. AMCON Distributing | CITIGROUP vs. Vindicator Silver Lead Mining | CITIGROUP vs. Lion One Metals | CITIGROUP vs. Highway Holdings Limited |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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