Correlation Between Coin Citadel and Iris Energy
Can any of the company-specific risk be diversified away by investing in both Coin Citadel and Iris Energy 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 Iris Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coin Citadel and Iris Energy, you can compare the effects of market volatilities on Coin Citadel and Iris Energy 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 Iris Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coin Citadel and Iris Energy.
Diversification Opportunities for Coin Citadel and Iris Energy
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coin and Iris is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Coin Citadel and Iris Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iris Energy 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 Iris Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iris Energy has no effect on the direction of Coin Citadel i.e., Coin Citadel and Iris Energy go up and down completely randomly.
Pair Corralation between Coin Citadel and Iris Energy
Given the investment horizon of 90 days Coin Citadel is expected to generate 4.95 times more return on investment than Iris Energy. However, Coin Citadel is 4.95 times more volatile than Iris Energy. It trades about 0.12 of its potential returns per unit of risk. Iris Energy is currently generating about 0.08 per unit of risk. If you would invest 0.02 in Coin Citadel on September 2, 2024 and sell it today you would lose (0.01) from holding Coin Citadel or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Coin Citadel vs. Iris Energy
Performance |
| Timeline |
| Coin Citadel |
| Iris Energy |
Coin Citadel and Iris Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coin Citadel and Iris Energy
The main advantage of trading using opposite Coin Citadel and Iris Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coin Citadel position performs unexpectedly, Iris Energy 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 Iris Energy will offset losses from the drop in Iris Energy's long position.| Coin Citadel vs. Helix Applications | Coin Citadel vs. CryptoStar Corp | Coin Citadel vs. First BITCoin Capital | Coin Citadel vs. ICOA Inc |
| Iris Energy vs. Ryanair Holdings PLC | Iris Energy vs. Old Dominion Freight | Iris Energy vs. Hafnia Limited | Iris Energy vs. Nexstar Broadcasting Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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