Correlation Between Coin Citadel and Lion Group
Can any of the company-specific risk be diversified away by investing in both Coin Citadel and Lion Group 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 Lion Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coin Citadel and Lion Group Holding, you can compare the effects of market volatilities on Coin Citadel and Lion Group 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 Lion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coin Citadel and Lion Group.
Diversification Opportunities for Coin Citadel and Lion Group
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coin and Lion is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Coin Citadel and Lion Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Group Holding 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 Lion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Group Holding has no effect on the direction of Coin Citadel i.e., Coin Citadel and Lion Group go up and down completely randomly.
Pair Corralation between Coin Citadel and Lion Group
Given the investment horizon of 90 days Coin Citadel is expected to generate 5.42 times more return on investment than Lion Group. However, Coin Citadel is 5.42 times more volatile than Lion Group Holding. It trades about 0.12 of its potential returns per unit of risk. Lion Group Holding is currently generating about -0.09 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 Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Coin Citadel vs. Lion Group Holding
Performance |
| Timeline |
| Coin Citadel |
| Lion Group Holding |
Coin Citadel and Lion Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coin Citadel and Lion Group
The main advantage of trading using opposite Coin Citadel and Lion Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coin Citadel position performs unexpectedly, Lion Group 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 Lion Group will offset losses from the drop in Lion Group's long position.| Coin Citadel vs. Helix Applications | Coin Citadel vs. CryptoStar Corp | Coin Citadel vs. First BITCoin Capital | Coin Citadel vs. ICOA Inc |
| Lion Group vs. Magic Empire Global | Lion Group vs. Netcapital | Lion Group vs. Mercurity Fintech Holding | Lion Group vs. Applied Blockchain |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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