Correlation Between Arcane Crypto and CITIC Securities
Can any of the company-specific risk be diversified away by investing in both Arcane Crypto and CITIC Securities 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 Arcane Crypto and CITIC Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arcane Crypto AB and CITIC Securities Co, you can compare the effects of market volatilities on Arcane Crypto and CITIC Securities 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 Arcane Crypto with a short position of CITIC Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcane Crypto and CITIC Securities.
Diversification Opportunities for Arcane Crypto and CITIC Securities
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Arcane and CITIC is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Arcane Crypto AB and CITIC Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Securities and Arcane Crypto 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 Arcane Crypto AB are associated (or correlated) with CITIC Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Securities has no effect on the direction of Arcane Crypto i.e., Arcane Crypto and CITIC Securities go up and down completely randomly.
Pair Corralation between Arcane Crypto and CITIC Securities
Assuming the 90 days horizon Arcane Crypto AB is expected to generate 5.84 times more return on investment than CITIC Securities. However, Arcane Crypto is 5.84 times more volatile than CITIC Securities Co. It trades about 0.04 of its potential returns per unit of risk. CITIC Securities Co is currently generating about 0.05 per unit of risk. If you would invest 0.23 in Arcane Crypto AB on September 12, 2024 and sell it today you would lose (0.22) from holding Arcane Crypto AB or give up 95.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.09% |
| Values | Daily Returns |
Arcane Crypto AB vs. CITIC Securities Co
Performance |
| Timeline |
| Arcane Crypto AB |
| CITIC Securities |
Arcane Crypto and CITIC Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arcane Crypto and CITIC Securities
The main advantage of trading using opposite Arcane Crypto and CITIC Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcane Crypto position performs unexpectedly, CITIC Securities 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 CITIC Securities will offset losses from the drop in CITIC Securities' long position.| Arcane Crypto vs. SPENN Technology AS | Arcane Crypto vs. OFX Group Ltd | Arcane Crypto vs. Blockmate Ventures | Arcane Crypto vs. Cypherpunk Holdings |
| CITIC Securities vs. SPENN Technology AS | CITIC Securities vs. Arcane Crypto AB | CITIC Securities vs. OFX Group Ltd | CITIC Securities vs. HUMANA INC |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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