Correlation Between Walmart and CITIGROUP
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By analyzing existing cross correlation between Walmart and CITIGROUP INC, you can compare the effects of market volatilities on Walmart 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 Walmart with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and CITIGROUP.
Diversification Opportunities for Walmart and CITIGROUP
Excellent diversification
The 3 months correlation between Walmart and CITIGROUP is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and CITIGROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC and Walmart 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 Walmart 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 Walmart i.e., Walmart and CITIGROUP go up and down completely randomly.
Pair Corralation between Walmart and CITIGROUP
Considering the 90-day investment horizon Walmart is expected to generate 1.26 times more return on investment than CITIGROUP. However, Walmart is 1.26 times more volatile than CITIGROUP INC. It trades about 0.3 of its potential returns per unit of risk. CITIGROUP INC is currently generating about -0.22 per unit of risk. If you would invest 7,978 in Walmart on August 28, 2024 and sell it today you would earn a total of 1,153 from holding Walmart or generate 14.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.35% |
| Values | Daily Returns |
Walmart vs. CITIGROUP INC
Performance |
| Timeline |
| Walmart |
| CITIGROUP INC |
Walmart and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and CITIGROUP
The main advantage of trading using opposite Walmart and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart 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.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| CITIGROUP vs. AEP TEX INC | CITIGROUP vs. US BANK NATIONAL | CITIGROUP vs. Eat Beyond Global | CITIGROUP vs. Charles Schwab 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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