Correlation Between Splitit Payments and CiT
Can any of the company-specific risk be diversified away by investing in both Splitit Payments 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 Splitit Payments and CiT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Splitit Payments and CiT Inc, you can compare the effects of market volatilities on Splitit Payments 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 Splitit Payments with a short position of CiT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Splitit Payments and CiT.
Diversification Opportunities for Splitit Payments and CiT
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Splitit and CiT is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Splitit Payments and CiT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CiT Inc and Splitit Payments 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 Splitit Payments 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 Splitit Payments i.e., Splitit Payments and CiT go up and down completely randomly.
Pair Corralation between Splitit Payments and CiT
Assuming the 90 days horizon Splitit Payments is expected to under-perform the CiT. In addition to that, Splitit Payments is 4.31 times more volatile than CiT Inc. It trades about -0.13 of its total potential returns per unit of risk. CiT Inc is currently generating about -0.01 per unit of volatility. If you would invest 707.00 in CiT Inc on August 28, 2024 and sell it today you would lose (27.00) from holding CiT Inc or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Splitit Payments vs. CiT Inc
Performance |
| Timeline |
| Splitit Payments |
| CiT Inc |
Splitit Payments and CiT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Splitit Payments and CiT
The main advantage of trading using opposite Splitit Payments and CiT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Splitit Payments 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.| Splitit Payments vs. Arax Holdings Corp | Splitit Payments vs. AppTech Payments Corp | Splitit Payments vs. Arbe Robotics Ltd | Splitit Payments vs. Argentum 47 |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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