Correlation Between FATFISH GROUP and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both FATFISH GROUP and Citizens Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining FATFISH GROUP and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FATFISH GROUP LTD and Citizens Financial Group, you can compare the effects of market volatilities on FATFISH GROUP and Citizens Financial 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 FATFISH GROUP with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of FATFISH GROUP and Citizens Financial.
Diversification Opportunities for FATFISH GROUP and Citizens Financial
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FATFISH and Citizens is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding FATFISH GROUP LTD and Citizens Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Financial and FATFISH GROUP 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 FATFISH GROUP LTD are associated (or correlated) with Citizens Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Financial has no effect on the direction of FATFISH GROUP i.e., FATFISH GROUP and Citizens Financial go up and down completely randomly.
Pair Corralation between FATFISH GROUP and Citizens Financial
Assuming the 90 days horizon FATFISH GROUP LTD is expected to generate 5.87 times more return on investment than Citizens Financial. However, FATFISH GROUP is 5.87 times more volatile than Citizens Financial Group. It trades about 0.1 of its potential returns per unit of risk. Citizens Financial Group is currently generating about 0.36 per unit of risk. If you would invest 0.45 in FATFISH GROUP LTD on August 28, 2024 and sell it today you would earn a total of 0.05 from holding FATFISH GROUP LTD or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FATFISH GROUP LTD vs. Citizens Financial Group
Performance |
| Timeline |
| FATFISH GROUP LTD |
| Citizens Financial |
FATFISH GROUP and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FATFISH GROUP and Citizens Financial
The main advantage of trading using opposite FATFISH GROUP and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FATFISH GROUP position performs unexpectedly, Citizens Financial 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 Citizens Financial will offset losses from the drop in Citizens Financial's long position.| FATFISH GROUP vs. Unity Software | FATFISH GROUP vs. Addus HomeCare | FATFISH GROUP vs. Autohome ADR | FATFISH GROUP vs. LGI Homes |
| Citizens Financial vs. ScanSource | Citizens Financial vs. Ameriprise Financial | Citizens Financial vs. PT Bank Maybank | Citizens Financial vs. CPU SOFTWAREHOUSE |
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 Positions Ratings module to 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.
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