This module allows you to analyze existing cross correlation between Citigroup Inc and Chevron Corporation. You can compare the effects of market volatilities on Citigroup and Chevron 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 Chevron. See also your portfolio center
. Please also check ongoing floating volatility patterns of Citigroup
Citigroup Inc vs Chevron Corp.
Taking into account the 30 trading days horizon, Citigroup Inc is expected to under-perform the Chevron. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup Inc is 2.73 times less risky than Chevron. The stock trades about -0.1 of its potential returns per unit of risk. The Chevron Corporation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 11,472 in Chevron Corporation on October 22, 2017 and sell it today you would earn a total of 78 from holding Chevron Corporation or generate 0.68% return on investment over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron 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 Inc are associated (or correlated) with Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of Citigroup i.e. Citigroup and Chevron go up and down completely randomly.
Over the last 30 days Citigroup Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.