Correlation Between Citrine Global and Stingray
Can any of the company-specific risk be diversified away by investing in both Citrine Global and Stingray 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 Stingray 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 Stingray Group, you can compare the effects of market volatilities on Citrine Global and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrine Global and Stingray.
Diversification Opportunities for Citrine Global and Stingray
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citrine and Stingray is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Citrine Global Corp and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Citrine Global i.e., Citrine Global and Stingray go up and down completely randomly.
Pair Corralation between Citrine Global and Stingray
Given the investment horizon of 90 days Citrine Global Corp is expected to generate 5.27 times more return on investment than Stingray. However, Citrine Global is 5.27 times more volatile than Stingray Group. It trades about 0.01 of its potential returns per unit of risk. Stingray Group is currently generating about 0.06 per unit of risk. If you would invest 4.50 in Citrine Global Corp on October 9, 2024 and sell it today you would lose (4.47) from holding Citrine Global Corp or give up 99.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citrine Global Corp vs. Stingray Group
Performance |
| Timeline |
| Citrine Global Corp |
| Stingray Group |
Citrine Global and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citrine Global and Stingray
The main advantage of trading using opposite Citrine Global and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrine Global position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray'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 |
| Stingray vs. XCPCNL Business Services | Stingray vs. International Consolidated Companies | Stingray vs. Mills Music Trust | Stingray vs. Citrine Global Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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