Correlation Between Citizens and Cartier Iron
Can any of the company-specific risk be diversified away by investing in both Citizens and Cartier Iron 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 Cartier Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens and Cartier Iron Corp, you can compare the effects of market volatilities on Citizens and Cartier Iron 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 Cartier Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens and Cartier Iron.
Diversification Opportunities for Citizens and Cartier Iron
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citizens and Cartier is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citizens and Cartier Iron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartier Iron Corp 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 Cartier Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartier Iron Corp has no effect on the direction of Citizens i.e., Citizens and Cartier Iron go up and down completely randomly.
Pair Corralation between Citizens and Cartier Iron
Considering the 90-day investment horizon Citizens is expected to under-perform the Cartier Iron. But the stock apears to be less risky and, when comparing its historical volatility, Citizens is 3.8 times less risky than Cartier Iron. The stock trades about -0.16 of its potential returns per unit of risk. The Cartier Iron Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Cartier Iron Corp on September 4, 2024 and sell it today you would earn a total of 0.50 from holding Cartier Iron Corp or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citizens vs. Cartier Iron Corp
Performance |
| Timeline |
| Citizens |
| Cartier Iron Corp |
Citizens and Cartier Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens and Cartier Iron
The main advantage of trading using opposite Citizens and Cartier Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens position performs unexpectedly, Cartier Iron 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 Cartier Iron will offset losses from the drop in Cartier Iron's long position.| Citizens vs. CNO Financial Group | Citizens vs. Brighthouse Financial | Citizens vs. FG Annuities Life | Citizens vs. Prudential Public Limited |
| Cartier Iron vs. Citizens | Cartier Iron vs. Sun Life Financial | Cartier Iron vs. Pekin Life Insurance | Cartier Iron vs. Kinsale Capital 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Correlations Find global opportunities by holding instruments from different markets |