Correlation Between Citizens and X Trade
Can any of the company-specific risk be diversified away by investing in both Citizens and X Trade 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 X Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens and X Trade Brokers, you can compare the effects of market volatilities on Citizens and X Trade 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 X Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens and X Trade.
Diversification Opportunities for Citizens and X Trade
Very good diversification
The 3 months correlation between Citizens and XTB is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Citizens and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers 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 X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of Citizens i.e., Citizens and X Trade go up and down completely randomly.
Pair Corralation between Citizens and X Trade
Considering the 90-day investment horizon Citizens is expected to generate 1.22 times less return on investment than X Trade. In addition to that, Citizens is 1.65 times more volatile than X Trade Brokers. It trades about 0.04 of its total potential returns per unit of risk. X Trade Brokers is currently generating about 0.08 per unit of volatility. If you would invest 2,863 in X Trade Brokers on December 2, 2024 and sell it today you would earn a total of 3,737 from holding X Trade Brokers or generate 130.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Citizens vs. X Trade Brokers
Performance |
| Timeline |
| Citizens |
| X Trade Brokers |
Citizens and X Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens and X Trade
The main advantage of trading using opposite Citizens and X Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens position performs unexpectedly, X Trade 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 X Trade will offset losses from the drop in X Trade's long position.| Citizens vs. CNO Financial Group | ||
| Citizens vs. Brighthouse Financial | ||
| Citizens vs. FG Annuities Life | ||
| Citizens vs. Prudential PLC ADR |
| X Trade vs. PMPG Polskie Media | ||
| X Trade vs. PZ Cormay SA | ||
| X Trade vs. Monnari Trade SA | ||
| X Trade vs. MW Trade SA |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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