This module allows you to analyze existing cross correlation between Chevron Corporation and Citigroup. You can compare the effects of market volatilities on Chevron 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 Chevron with a short position of Citigroup. See also your portfolio center. Please also check ongoing floating volatility patterns of Chevron and Citigroup.
|Horizon||30 Days Login to change|
Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Chevron and Citigroup Volatility Contrast
Predicted Return Density
Chevron Corp. vs. Citigroup Inc
Considering 30-days investment horizon, Chevron Corporation is expected to generate 0.65 times more return on investment than Citigroup. However, Chevron Corporation is 1.54 times less risky than Citigroup. It trades about -0.12 of its potential returns per unit of risk. Citigroup is currently generating about -0.08 per unit of risk. If you would invest 12,293 in Chevron Corporation on July 18, 2019 and sell it today you would lose (712.00) from holding Chevron Corporation or give up 5.79% of portfolio value over 30 days.
Pair Corralation between Chevron and Citigroup
|Time Period||2 Months [change]|
Diversification Opportunities for Chevron and Citigroup
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. and Citigroup Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Chevron 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 Chevron Corporation 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 has no effect on the direction of Chevron i.e. Chevron and Citigroup go up and down completely randomly.
See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..