Correlation Between Coin Citadel and MGT Capital
Can any of the company-specific risk be diversified away by investing in both Coin Citadel and MGT 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 MGT 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 MGT Capital Investments, you can compare the effects of market volatilities on Coin Citadel and MGT 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 MGT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coin Citadel and MGT Capital.
Diversification Opportunities for Coin Citadel and MGT Capital
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coin and MGT is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Coin Citadel and MGT Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGT Capital Investments 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 MGT Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGT Capital Investments has no effect on the direction of Coin Citadel i.e., Coin Citadel and MGT Capital go up and down completely randomly.
Pair Corralation between Coin Citadel and MGT Capital
Given the investment horizon of 90 days Coin Citadel is expected to generate 2.95 times more return on investment than MGT Capital. However, Coin Citadel is 2.95 times more volatile than MGT Capital Investments. It trades about 0.12 of its potential returns per unit of risk. MGT Capital Investments is currently generating about 0.05 per unit of risk. If you would invest 0.02 in Coin Citadel on August 30, 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 | 31.11% |
| Values | Daily Returns |
Coin Citadel vs. MGT Capital Investments
Performance |
| Timeline |
| Coin Citadel |
| MGT Capital Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coin Citadel and MGT Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coin Citadel and MGT Capital
The main advantage of trading using opposite Coin Citadel and MGT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coin Citadel position performs unexpectedly, MGT 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 MGT Capital will offset losses from the drop in MGT 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 |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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