Correlation Between NYSE Composite and Citrine Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Citrine Global 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 NYSE Composite and Citrine Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Citrine Global Corp, you can compare the effects of market volatilities on NYSE Composite and Citrine Global 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 NYSE Composite with a short position of Citrine Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Citrine Global.
Diversification Opportunities for NYSE Composite and Citrine Global
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Citrine is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Citrine Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citrine Global Corp and NYSE Composite 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 NYSE Composite are associated (or correlated) with Citrine Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citrine Global Corp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Citrine Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Citrine Global
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.38 times less return on investment than Citrine Global. But when comparing it to its historical volatility, NYSE Composite is 20.49 times less risky than Citrine Global. It trades about 0.08 of its potential returns per unit of risk. Citrine Global Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4.70 in Citrine Global Corp on September 2, 2024 and sell it today you would lose (4.67) from holding Citrine Global Corp or give up 99.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
NYSE Composite vs. Citrine Global Corp
Performance |
| Timeline |
NYSE Composite and Citrine Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Citrine Global Corp
Pair trading matchups for Citrine Global
Pair Trading with NYSE Composite and Citrine Global
The main advantage of trading using opposite NYSE Composite and Citrine Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Citrine Global 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 Citrine Global will offset losses from the drop in Citrine Global's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Citrine Global vs. Mills Music Trust | Citrine Global vs. Blue Water Ventures | Citrine Global vs. DATA Communications Management | Citrine Global vs. Mitie Group 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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