Correlation Between Citrine Global and ABM Industries
Can any of the company-specific risk be diversified away by investing in both Citrine Global and ABM Industries 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 Citrine Global and ABM Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citrine Global Corp and ABM Industries Incorporated, you can compare the effects of market volatilities on Citrine Global and ABM Industries 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 Citrine Global with a short position of ABM Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrine Global and ABM Industries.
Diversification Opportunities for Citrine Global and ABM Industries
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citrine and ABM is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Citrine Global Corp and ABM Industries Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABM Industries and Citrine Global 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 Citrine Global Corp are associated (or correlated) with ABM Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABM Industries has no effect on the direction of Citrine Global i.e., Citrine Global and ABM Industries go up and down completely randomly.
Pair Corralation between Citrine Global and ABM Industries
Given the investment horizon of 90 days Citrine Global Corp is expected to under-perform the ABM Industries. In addition to that, Citrine Global is 13.1 times more volatile than ABM Industries Incorporated. It trades about -0.21 of its total potential returns per unit of risk. ABM Industries Incorporated is currently generating about 0.22 per unit of volatility. If you would invest 5,097 in ABM Industries Incorporated on November 9, 2024 and sell it today you would earn a total of 246.00 from holding ABM Industries Incorporated or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citrine Global Corp vs. ABM Industries Incorporated
Performance |
| Timeline |
| Citrine Global Corp |
| ABM Industries |
Citrine Global and ABM Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citrine Global and ABM Industries
The main advantage of trading using opposite Citrine Global and ABM Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrine Global position performs unexpectedly, ABM Industries 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 ABM Industries will offset losses from the drop in ABM Industries' long position.| Citrine Global vs. Mills Music Trust | Citrine Global vs. Blue Water Ventures | Citrine Global vs. DATA Communications Management | Citrine Global vs. Mitie Group Plc |
| ABM Industries vs. Cass Information Systems | ABM Industries vs. First Advantage Corp | ABM Industries vs. Rentokil Initial PLC | ABM Industries vs. CBIZ Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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