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|
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in June 2019.
Over the last 30 days CVS Health Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, CVS Health is not utilizing all of its potentials. The prevalent stock price agitation, may contribute to short running losses for the management.
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 generate 0.94 times more return on investment than CVS Health. However, Citigroup is 1.06 times less risky than CVS Health. It trades about 0.13 of its potential returns per unit of risk. CVS Health Corporation is currently generating about -0.06 per unit of risk. If you would invest 6,098 in Citigroup on April 21, 2019 and sell it today you would earn a total of 485.00 from holding Citigroup or generate 7.95% 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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.