Correlation Between CiT and Hub Cyber
Can any of the company-specific risk be diversified away by investing in both CiT and Hub Cyber 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 CiT and Hub Cyber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CiT Inc and Hub Cyber Security, you can compare the effects of market volatilities on CiT and Hub Cyber 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 CiT with a short position of Hub Cyber. Check out your portfolio center. Please also check ongoing floating volatility patterns of CiT and Hub Cyber.
Diversification Opportunities for CiT and Hub Cyber
Very good diversification
The 3 months correlation between CiT and Hub is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding CiT Inc and Hub Cyber Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Cyber Security and CiT 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 CiT Inc are associated (or correlated) with Hub Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Cyber Security has no effect on the direction of CiT i.e., CiT and Hub Cyber go up and down completely randomly.
Pair Corralation between CiT and Hub Cyber
Given the investment horizon of 90 days CiT Inc is expected to under-perform the Hub Cyber. But the stock apears to be less risky and, when comparing its historical volatility, CiT Inc is 14.33 times less risky than Hub Cyber. The stock trades about 0.0 of its potential returns per unit of risk. The Hub Cyber Security is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 0.43 in Hub Cyber Security on August 28, 2024 and sell it today you would earn a total of 0.61 from holding Hub Cyber Security or generate 141.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CiT Inc vs. Hub Cyber Security
Performance |
| Timeline |
| CiT Inc |
| Hub Cyber Security |
CiT and Hub Cyber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CiT and Hub Cyber
The main advantage of trading using opposite CiT and Hub Cyber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CiT position performs unexpectedly, Hub Cyber 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 Hub Cyber will offset losses from the drop in Hub Cyber's long position.The idea behind CiT Inc and Hub Cyber Security pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hub Cyber vs. Black Hills | Hub Cyber vs. PGE Corp | Hub Cyber vs. Dave Busters Entertainment | Hub Cyber vs. Warner Music 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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