Correlation Between GigaMedia and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both GigaMedia and Citizens Financial 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 GigaMedia and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaMedia and Citizens Financial Group, you can compare the effects of market volatilities on GigaMedia and Citizens Financial 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 GigaMedia with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaMedia and Citizens Financial.
Diversification Opportunities for GigaMedia and Citizens Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GigaMedia and Citizens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GigaMedia and Citizens Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Financial and GigaMedia 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 GigaMedia are associated (or correlated) with Citizens Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Financial has no effect on the direction of GigaMedia i.e., GigaMedia and Citizens Financial go up and down completely randomly.
Pair Corralation between GigaMedia and Citizens Financial
If you would invest 117.00 in GigaMedia on August 30, 2024 and sell it today you would earn a total of 16.00 from holding GigaMedia or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
GigaMedia vs. Citizens Financial Group
Performance |
| Timeline |
| GigaMedia |
| Citizens Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GigaMedia and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaMedia and Citizens Financial
The main advantage of trading using opposite GigaMedia and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaMedia position performs unexpectedly, Citizens Financial 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 Citizens Financial will offset losses from the drop in Citizens Financial's long position.| GigaMedia vs. Liberty Broadband | GigaMedia vs. MHP Hotel AG | GigaMedia vs. HYATT HOTELS A | GigaMedia vs. GOLD ROAD RES |
| Citizens Financial vs. Harmony Gold Mining | Citizens Financial vs. Lion One Metals | Citizens Financial vs. SERI INDUSTRIAL EO | Citizens Financial vs. Gamma Communications 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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