Correlation Between Citizens and Sino American
Can any of the company-specific risk be diversified away by investing in both Citizens and Sino American 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 Citizens and Sino American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens and Sino American Silicon Products, you can compare the effects of market volatilities on Citizens and Sino American 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 Citizens with a short position of Sino American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens and Sino American.
Diversification Opportunities for Citizens and Sino American
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citizens and Sino is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citizens and Sino American Silicon Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino American Silicon and Citizens 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 Citizens are associated (or correlated) with Sino American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino American Silicon has no effect on the direction of Citizens i.e., Citizens and Sino American go up and down completely randomly.
Pair Corralation between Citizens and Sino American
Considering the 90-day investment horizon Citizens is expected to generate 2.24 times more return on investment than Sino American. However, Citizens is 2.24 times more volatile than Sino American Silicon Products. It trades about 0.04 of its potential returns per unit of risk. Sino American Silicon Products is currently generating about -0.01 per unit of risk. If you would invest 318.00 in Citizens on December 12, 2024 and sell it today you would earn a total of 126.00 from holding Citizens or generate 39.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.37% |
| Values | Daily Returns |
Citizens vs. Sino American Silicon Products
Performance |
| Timeline |
| Citizens |
| Sino American Silicon |
Citizens and Sino American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens and Sino American
The main advantage of trading using opposite Citizens and Sino American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens position performs unexpectedly, Sino American 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 Sino American will offset losses from the drop in Sino American's long position.| Citizens vs. CNO Financial Group | ||
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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