Correlation Between 66977WAR0 and Citizens
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By analyzing existing cross correlation between Nova Chemicals 525 and Citizens, you can compare the effects of market volatilities on 66977WAR0 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 66977WAR0 with a short position of Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of 66977WAR0 and Citizens.
Diversification Opportunities for 66977WAR0 and Citizens
Very good diversification
The 3 months correlation between 66977WAR0 and Citizens is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Nova Chemicals 525 and Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens and 66977WAR0 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 Nova Chemicals 525 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 66977WAR0 i.e., 66977WAR0 and Citizens go up and down completely randomly.
Pair Corralation between 66977WAR0 and Citizens
Assuming the 90 days trading horizon Nova Chemicals 525 is expected to under-perform the Citizens. But the bond apears to be less risky and, when comparing its historical volatility, Nova Chemicals 525 is 4.82 times less risky than Citizens. The bond trades about -0.01 of its potential returns per unit of risk. The Citizens is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 235.00 in Citizens on September 3, 2024 and sell it today you would earn a total of 213.00 from holding Citizens or generate 90.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.76% |
| Values | Daily Returns |
Nova Chemicals 525 vs. Citizens
Performance |
| Timeline |
| Nova Chemicals 525 |
| Citizens |
66977WAR0 and Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 66977WAR0 and Citizens
The main advantage of trading using opposite 66977WAR0 and Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 66977WAR0 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.| 66977WAR0 vs. Citizens | 66977WAR0 vs. The Hanover Insurance | 66977WAR0 vs. United Fire Group | 66977WAR0 vs. Semtech |
| Citizens vs. CNO Financial Group | Citizens vs. Brighthouse Financial | Citizens vs. FG Annuities Life | Citizens vs. Prudential Public Limited |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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