Correlation Between Citicore Energy and Premiere Entertainment
Can any of the company-specific risk be diversified away by investing in both Citicore Energy and Premiere Entertainment 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 Citicore Energy and Premiere Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citicore Energy REIT and Premiere Entertainment, you can compare the effects of market volatilities on Citicore Energy and Premiere Entertainment 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 Citicore Energy with a short position of Premiere Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citicore Energy and Premiere Entertainment.
Diversification Opportunities for Citicore Energy and Premiere Entertainment
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citicore and Premiere is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Citicore Energy REIT and Premiere Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premiere Entertainment and Citicore Energy 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 Citicore Energy REIT are associated (or correlated) with Premiere Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premiere Entertainment has no effect on the direction of Citicore Energy i.e., Citicore Energy and Premiere Entertainment go up and down completely randomly.
Pair Corralation between Citicore Energy and Premiere Entertainment
Assuming the 90 days trading horizon Citicore Energy REIT is expected to generate 0.29 times more return on investment than Premiere Entertainment. However, Citicore Energy REIT is 3.51 times less risky than Premiere Entertainment. It trades about 0.3 of its potential returns per unit of risk. Premiere Entertainment is currently generating about 0.01 per unit of risk. If you would invest 309.00 in Citicore Energy REIT on November 5, 2024 and sell it today you would earn a total of 10.00 from holding Citicore Energy REIT or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Citicore Energy REIT vs. Premiere Entertainment
Performance |
| Timeline |
| Citicore Energy REIT |
| Premiere Entertainment |
Citicore Energy and Premiere Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citicore Energy and Premiere Entertainment
The main advantage of trading using opposite Citicore Energy and Premiere Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citicore Energy position performs unexpectedly, Premiere Entertainment 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 Premiere Entertainment will offset losses from the drop in Premiere Entertainment's long position.| Citicore Energy vs. Lepanto Consolidated Mining | Citicore Energy vs. SM Investments Corp | Citicore Energy vs. Concepcion Industrial Corp | Citicore Energy vs. National Reinsurance |
| Premiere Entertainment vs. National Reinsurance | Premiere Entertainment vs. Lepanto Consolidated Mining | Premiere Entertainment vs. Apex Mining Co | Premiere Entertainment vs. Metropolitan Bank Trust |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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