Correlation Between Hub Cyber and CiT
Can any of the company-specific risk be diversified away by investing in both Hub Cyber and CiT 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 Hub Cyber and CiT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hub Cyber Security and CiT Inc, you can compare the effects of market volatilities on Hub Cyber and CiT 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 Hub Cyber with a short position of CiT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hub Cyber and CiT.
Diversification Opportunities for Hub Cyber and CiT
Significant diversification
The 3 months correlation between Hub and CiT is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hub Cyber Security and CiT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CiT Inc and Hub Cyber 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 Hub Cyber Security are associated (or correlated) with CiT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CiT Inc has no effect on the direction of Hub Cyber i.e., Hub Cyber and CiT go up and down completely randomly.
Pair Corralation between Hub Cyber and CiT
Given the investment horizon of 90 days Hub Cyber Security is expected to under-perform the CiT. In addition to that, Hub Cyber is 2.75 times more volatile than CiT Inc. It trades about -0.04 of its total potential returns per unit of risk. CiT Inc is currently generating about 0.05 per unit of volatility. If you would invest 502.00 in CiT Inc on September 4, 2024 and sell it today you would earn a total of 166.00 from holding CiT Inc or generate 33.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hub Cyber Security vs. CiT Inc
Performance |
| Timeline |
| Hub Cyber Security |
| CiT Inc |
Hub Cyber and CiT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hub Cyber and CiT
The main advantage of trading using opposite Hub Cyber and CiT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hub Cyber position performs unexpectedly, CiT 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 CiT will offset losses from the drop in CiT's long position.| Hub Cyber vs. authID Inc | Hub Cyber vs. VirnetX Holding Corp | Hub Cyber vs. Aurora Mobile | Hub Cyber vs. GigaCloud Technology Class |
| CiT vs. Alarum Technologies | CiT vs. Nutanix | CiT vs. Palo Alto Networks | CiT vs. GigaCloud Technology Class |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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