Correlation Between Citigroup and HONEYWELL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and HONEYWELL INTL INC, you can compare the effects of market volatilities on Citigroup and HONEYWELL 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 HONEYWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and HONEYWELL.
Diversification Opportunities for Citigroup and HONEYWELL
Very good diversification
The 3 months correlation between Citigroup and HONEYWELL is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and HONEYWELL INTL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HONEYWELL INTL INC 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 HONEYWELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HONEYWELL INTL INC has no effect on the direction of Citigroup i.e., Citigroup and HONEYWELL go up and down completely randomly.
Pair Corralation between Citigroup and HONEYWELL
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.39 times more return on investment than HONEYWELL. However, Citigroup is 1.39 times more volatile than HONEYWELL INTL INC. It trades about 0.07 of its potential returns per unit of risk. HONEYWELL INTL INC is currently generating about 0.01 per unit of risk. If you would invest 4,219 in Citigroup on September 23, 2024 and sell it today you would earn a total of 2,700 from holding Citigroup or generate 64.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 48.49% |
Values | Daily Returns |
Citigroup vs. HONEYWELL INTL INC
Performance |
Timeline |
Citigroup |
HONEYWELL INTL INC |
Citigroup and HONEYWELL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and HONEYWELL
The main advantage of trading using opposite Citigroup and HONEYWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, HONEYWELL 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 HONEYWELL will offset losses from the drop in HONEYWELL's long position.Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
HONEYWELL vs. AEP TEX INC | HONEYWELL vs. US BANK NATIONAL | HONEYWELL vs. Brightsphere Investment Group | HONEYWELL vs. Neurocrine Biosciences |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |