Correlation Between CiT and Splitit Payments
Can any of the company-specific risk be diversified away by investing in both CiT and Splitit Payments 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 Splitit Payments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CiT Inc and Splitit Payments, you can compare the effects of market volatilities on CiT and Splitit Payments 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 Splitit Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of CiT and Splitit Payments.
Diversification Opportunities for CiT and Splitit Payments
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between CiT and Splitit is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding CiT Inc and Splitit Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Splitit Payments 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 Splitit Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Splitit Payments has no effect on the direction of CiT i.e., CiT and Splitit Payments go up and down completely randomly.
Pair Corralation between CiT and Splitit Payments
Given the investment horizon of 90 days CiT Inc is expected to generate 0.23 times more return on investment than Splitit Payments. However, CiT Inc is 4.31 times less risky than Splitit Payments. It trades about -0.01 of its potential returns per unit of risk. Splitit Payments is currently generating about -0.13 per unit of risk. If you would invest 707.00 in CiT Inc on August 28, 2024 and sell it today you would lose (27.00) from holding CiT Inc or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CiT Inc vs. Splitit Payments
Performance |
| Timeline |
| CiT Inc |
| Splitit Payments |
CiT and Splitit Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CiT and Splitit Payments
The main advantage of trading using opposite CiT and Splitit Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CiT position performs unexpectedly, Splitit Payments 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 Splitit Payments will offset losses from the drop in Splitit Payments' long position.The idea behind CiT Inc and Splitit Payments 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.| Splitit Payments vs. Arax Holdings Corp | Splitit Payments vs. AppTech Payments Corp | Splitit Payments vs. Arbe Robotics Ltd | Splitit Payments vs. Argentum 47 |
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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