Correlation Between Citrine Global and Mitie Group
Can any of the company-specific risk be diversified away by investing in both Citrine Global and Mitie Group 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 Mitie Group 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 Mitie Group Plc, you can compare the effects of market volatilities on Citrine Global and Mitie Group 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 Mitie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrine Global and Mitie Group.
Diversification Opportunities for Citrine Global and Mitie Group
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citrine and Mitie is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Citrine Global Corp and Mitie Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitie Group Plc 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 Mitie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitie Group Plc has no effect on the direction of Citrine Global i.e., Citrine Global and Mitie Group go up and down completely randomly.
Pair Corralation between Citrine Global and Mitie Group
Given the investment horizon of 90 days Citrine Global is expected to generate 2.96 times less return on investment than Mitie Group. In addition to that, Citrine Global is 7.5 times more volatile than Mitie Group Plc. It trades about 0.0 of its total potential returns per unit of risk. Mitie Group Plc is currently generating about 0.03 per unit of volatility. If you would invest 470.00 in Mitie Group Plc on August 31, 2024 and sell it today you would earn a total of 88.00 from holding Mitie Group Plc or generate 18.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.66% |
| Values | Daily Returns |
Citrine Global Corp vs. Mitie Group Plc
Performance |
| Timeline |
| Citrine Global Corp |
| Mitie Group Plc |
Citrine Global and Mitie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citrine Global and Mitie Group
The main advantage of trading using opposite Citrine Global and Mitie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrine Global position performs unexpectedly, Mitie Group 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 Mitie Group will offset losses from the drop in Mitie Group's long position.| Citrine Global vs. Cintas | Citrine Global vs. Thomson Reuters Corp | Citrine Global vs. Global Payments | Citrine Global vs. RB Global |
| Mitie Group vs. Intertek Group Plc | Mitie Group vs. Wildpack Beverage | Mitie Group vs. DATA Communications Management | Mitie Group vs. Dexterra 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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