Correlation Between Citrine Global and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Citrine Global and Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics Co, you can compare the effects of market volatilities on Citrine Global and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrine Global and Samsung Electronics.
Diversification Opportunities for Citrine Global and Samsung Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citrine and Samsung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citrine Global Corp and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Citrine Global i.e., Citrine Global and Samsung Electronics go up and down completely randomly.
Pair Corralation between Citrine Global and Samsung Electronics
Given the investment horizon of 90 days Citrine Global Corp is expected to generate 248.47 times more return on investment than Samsung Electronics. However, Citrine Global is 248.47 times more volatile than Samsung Electronics Co. It trades about 0.0 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.09 per unit of risk. If you would invest 4.39 in Citrine Global Corp on October 25, 2024 and sell it today you would lose (4.38) from holding Citrine Global Corp or give up 99.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Citrine Global Corp vs. Samsung Electronics Co
Performance |
| Timeline |
| Citrine Global Corp |
| Samsung Electronics |
Citrine Global and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citrine Global and Samsung Electronics
The main advantage of trading using opposite Citrine Global and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrine Global position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' 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 |
| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp | Samsung Electronics vs. TCL Electronics Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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