Correlation Between Linkage Global and Citizens
Can any of the company-specific risk be diversified away by investing in both Linkage Global and Citizens 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 Linkage Global and Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Linkage Global Ordinary and Citizens, you can compare the effects of market volatilities on Linkage Global and Citizens 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 Linkage Global with a short position of Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linkage Global and Citizens.
Diversification Opportunities for Linkage Global and Citizens
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Linkage and Citizens is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Linkage Global Ordinary and Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens and Linkage 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 Linkage Global Ordinary are associated (or correlated) with Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens has no effect on the direction of Linkage Global i.e., Linkage Global and Citizens go up and down completely randomly.
Pair Corralation between Linkage Global and Citizens
Given the investment horizon of 90 days Linkage Global Ordinary is expected to under-perform the Citizens. In addition to that, Linkage Global is 1.81 times more volatile than Citizens. It trades about -0.05 of its total potential returns per unit of risk. Citizens is currently generating about 0.02 per unit of volatility. If you would invest 486.00 in Citizens on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Citizens or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linkage Global Ordinary vs. Citizens
Performance |
| Timeline |
| Linkage Global Ordinary |
| Citizens |
Linkage Global and Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linkage Global and Citizens
The main advantage of trading using opposite Linkage Global and Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linkage Global position performs unexpectedly, Citizens 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 will offset losses from the drop in Citizens' long position.| Linkage Global vs. Boston Beer | Linkage Global vs. Drilling Tools International | Linkage Global vs. Cabo Drilling Corp | Linkage Global vs. Integrated Drilling Equipment |
| Citizens vs. CNO Financial Group | Citizens vs. Brighthouse Financial | Citizens vs. FG Annuities Life | Citizens vs. Prudential PLC ADR |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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