Correlation Between Citigroup and CVS Health
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By analyzing existing cross correlation between Citigroup and CVS Health, you can compare the effects of market volatilities on Citigroup and CVS Health 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 CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and CVS Health.
Diversification Opportunities for Citigroup and CVS Health
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and CVS is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and CVS Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health 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 CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health has no effect on the direction of Citigroup i.e., Citigroup and CVS Health go up and down completely randomly.
Pair Corralation between Citigroup and CVS Health
Assuming the 90 days trading horizon Citigroup is expected to generate 0.67 times more return on investment than CVS Health. However, Citigroup is 1.49 times less risky than CVS Health. It trades about 0.09 of its potential returns per unit of risk. CVS Health is currently generating about -0.02 per unit of risk. If you would invest 5,009 in Citigroup on August 29, 2024 and sell it today you would earn a total of 1,660 from holding Citigroup or generate 33.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. CVS Health
Performance |
| Timeline |
| Citigroup |
| CVS Health |
Citigroup and CVS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and CVS Health
The main advantage of trading using opposite Citigroup and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, CVS Health 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 CVS Health will offset losses from the drop in CVS Health's long position.| Citigroup vs. CVS Health | Citigroup vs. SIDETRADE EO 1 | Citigroup vs. CANON MARKETING JP | Citigroup vs. GUARDANT HEALTH CL |
| CVS Health vs. Apple Inc | CVS Health vs. Apple Inc | CVS Health vs. Superior Plus Corp | CVS Health vs. SIVERS SEMICONDUCTORS AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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