Correlation Between Coin Citadel and Armada Mercantile
Can any of the company-specific risk be diversified away by investing in both Coin Citadel and Armada Mercantile 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 Coin Citadel and Armada Mercantile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coin Citadel and Armada Mercantile, you can compare the effects of market volatilities on Coin Citadel and Armada Mercantile 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 Coin Citadel with a short position of Armada Mercantile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coin Citadel and Armada Mercantile.
Diversification Opportunities for Coin Citadel and Armada Mercantile
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coin and Armada is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Coin Citadel and Armada Mercantile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Mercantile and Coin Citadel 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 Coin Citadel are associated (or correlated) with Armada Mercantile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Mercantile has no effect on the direction of Coin Citadel i.e., Coin Citadel and Armada Mercantile go up and down completely randomly.
Pair Corralation between Coin Citadel and Armada Mercantile
Given the investment horizon of 90 days Coin Citadel is not expected to generate positive returns. Moreover, Coin Citadel is 1.84 times more volatile than Armada Mercantile. It trades away all of its potential returns to assume current level of volatility. Armada Mercantile is currently generating about 0.12 per unit of risk. If you would invest 20.00 in Armada Mercantile on November 28, 2024 and sell it today you would earn a total of 4.00 from holding Armada Mercantile or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Coin Citadel vs. Armada Mercantile
Performance |
| Timeline |
| Coin Citadel |
| Armada Mercantile |
Coin Citadel and Armada Mercantile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coin Citadel and Armada Mercantile
The main advantage of trading using opposite Coin Citadel and Armada Mercantile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coin Citadel position performs unexpectedly, Armada Mercantile 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 Armada Mercantile will offset losses from the drop in Armada Mercantile's long position.| Coin Citadel vs. Helix Applications | Coin Citadel vs. CryptoStar Corp | Coin Citadel vs. First BITCoin Capital | Coin Citadel vs. ICOA Inc |
| Armada Mercantile vs. Arcane Crypto AB | Armada Mercantile vs. OFX Group Ltd | Armada Mercantile vs. Blockmate Ventures | Armada Mercantile vs. Bitcoin Well |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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