This module allows you to analyze existing cross correlation between Citigroup and CVS Health Corporation. 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. See also your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and CVS Health.
|Horizon||30 Days Login to change|
Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2019. The current disturbance may also be a sign of long term up-swing for the company investors.
Compared to the overall equity markets, risk-adjusted returns on investments in CVS Health Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, CVS Health reported solid returns over the last few months and may actually be approaching a breakup point.
Citigroup and CVS Health Volatility Contrast
Predicted Return Density
Citigroup Inc vs. CVS Health Corp.
Taking into account the 30 trading days horizon, Citigroup is expected to under-perform the CVS Health. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 1.0 times less risky than CVS Health. The stock trades about -0.13 of its potential returns per unit of risk. The CVS Health Corporation is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,370 in CVS Health Corporation on July 26, 2019 and sell it today you would earn a total of 473.00 from holding CVS Health Corporation or generate 8.81% return on investment over 30 days.
Pair Corralation between Citigroup and CVS Health
|Time Period||2 Months [change]|
Diversification Opportunities for Citigroup and CVS Health
Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc and CVS Health Corp. 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.
See also your portfolio center. Please also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.