Correlation Between Citigroup and HONEYWELL
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By analyzing existing cross correlation between Citigroup and HONEYWELL INTERNATIONAL 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
Excellent diversification
The 3 months correlation between Citigroup and HONEYWELL is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and HONEYWELL INTERNATIONAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HONEYWELL INTERNATIONAL 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 INTERNATIONAL 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 49.77 times less return on investment than HONEYWELL. But when comparing it to its historical volatility, Citigroup is 48.44 times less risky than HONEYWELL. It trades about 0.07 of its potential returns per unit of risk. HONEYWELL INTERNATIONAL INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,353 in HONEYWELL INTERNATIONAL INC on September 23, 2024 and sell it today you would earn a total of 109.00 from holding HONEYWELL INTERNATIONAL INC or generate 1.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 64.79% |
Values | Daily Returns |
Citigroup vs. HONEYWELL INTERNATIONAL INC
Performance |
Timeline |
Citigroup |
HONEYWELL INTERNATIONAL |
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 |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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