Correlation Between Coin Citadel and GreenBank Capital
Can any of the company-specific risk be diversified away by investing in both Coin Citadel and GreenBank Capital 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 GreenBank Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coin Citadel and GreenBank Capital, you can compare the effects of market volatilities on Coin Citadel and GreenBank Capital 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 GreenBank Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coin Citadel and GreenBank Capital.
Diversification Opportunities for Coin Citadel and GreenBank Capital
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Coin and GreenBank is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Coin Citadel and GreenBank Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenBank Capital 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 GreenBank Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenBank Capital has no effect on the direction of Coin Citadel i.e., Coin Citadel and GreenBank Capital go up and down completely randomly.
Pair Corralation between Coin Citadel and GreenBank Capital
Given the investment horizon of 90 days Coin Citadel is expected to generate 2.13 times less return on investment than GreenBank Capital. But when comparing it to its historical volatility, Coin Citadel is 2.11 times less risky than GreenBank Capital. It trades about 0.12 of its potential returns per unit of risk. GreenBank Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 9.04 in GreenBank Capital on August 30, 2024 and sell it today you would lose (8.17) from holding GreenBank Capital or give up 90.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coin Citadel vs. GreenBank Capital
Performance |
| Timeline |
| Coin Citadel |
| GreenBank Capital |
Coin Citadel and GreenBank Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coin Citadel and GreenBank Capital
The main advantage of trading using opposite Coin Citadel and GreenBank Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coin Citadel position performs unexpectedly, GreenBank Capital 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 GreenBank Capital will offset losses from the drop in GreenBank Capital's long position.| Coin Citadel vs. Helix Applications | Coin Citadel vs. CryptoStar Corp | Coin Citadel vs. First BITCoin Capital | Coin Citadel vs. ICOA Inc |
| GreenBank Capital vs. ESE Entertainment | GreenBank Capital vs. St Georges Eco Mining Corp | GreenBank Capital vs. Victory Square Technologies | GreenBank Capital vs. PowerBand Solutions |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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