Correlation Between Citrine Global and CBIZ
Can any of the company-specific risk be diversified away by investing in both Citrine Global and CBIZ 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 CBIZ 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 CBIZ Inc, you can compare the effects of market volatilities on Citrine Global and CBIZ 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 CBIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrine Global and CBIZ.
Diversification Opportunities for Citrine Global and CBIZ
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citrine and CBIZ is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Citrine Global Corp and CBIZ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBIZ Inc 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 CBIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBIZ Inc has no effect on the direction of Citrine Global i.e., Citrine Global and CBIZ go up and down completely randomly.
Pair Corralation between Citrine Global and CBIZ
Given the investment horizon of 90 days Citrine Global Corp is expected to under-perform the CBIZ. In addition to that, Citrine Global is 12.74 times more volatile than CBIZ Inc. It trades about -0.22 of its total potential returns per unit of risk. CBIZ Inc is currently generating about 0.3 per unit of volatility. If you would invest 8,116 in CBIZ Inc on November 2, 2024 and sell it today you would earn a total of 539.00 from holding CBIZ Inc or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Citrine Global Corp vs. CBIZ Inc
Performance |
| Timeline |
| Citrine Global Corp |
| CBIZ Inc |
Citrine Global and CBIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citrine Global and CBIZ
The main advantage of trading using opposite Citrine Global and CBIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrine Global position performs unexpectedly, CBIZ 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 CBIZ will offset losses from the drop in CBIZ's 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 |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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