Correlation Between Citizens and Linkage Global
Can any of the company-specific risk be diversified away by investing in both Citizens and Linkage Global 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 Linkage Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens and Linkage Global Ordinary, you can compare the effects of market volatilities on Citizens and Linkage Global 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 Linkage Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens and Linkage Global.
Diversification Opportunities for Citizens and Linkage Global
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citizens and Linkage is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citizens and Linkage Global Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linkage Global Ordinary 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 Linkage Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linkage Global Ordinary has no effect on the direction of Citizens i.e., Citizens and Linkage Global go up and down completely randomly.
Pair Corralation between Citizens and Linkage Global
Considering the 90-day investment horizon Citizens is expected to generate 0.55 times more return on investment than Linkage Global. However, Citizens is 1.81 times less risky than Linkage Global. It trades about 0.02 of its potential returns per unit of risk. Linkage Global Ordinary is currently generating about -0.05 per unit of risk. If you would invest 486.00 in Citizens on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Citizens or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens vs. Linkage Global Ordinary
Performance |
| Timeline |
| Citizens |
| Linkage Global Ordinary |
Citizens and Linkage Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens and Linkage Global
The main advantage of trading using opposite Citizens and Linkage Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens position performs unexpectedly, Linkage Global 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 Linkage Global will offset losses from the drop in Linkage Global's long position.| Citizens vs. CNO Financial Group | Citizens vs. Brighthouse Financial | Citizens vs. FG Annuities Life | Citizens vs. Prudential PLC ADR |
| Linkage Global vs. Boston Beer | Linkage Global vs. Drilling Tools International | Linkage Global vs. Cabo Drilling Corp | Linkage Global vs. Integrated Drilling Equipment |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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