Correlation Between N Citron and IM CoLtd
Can any of the company-specific risk be diversified away by investing in both N Citron and IM CoLtd 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 N Citron and IM CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between N Citron and IM CoLtd, you can compare the effects of market volatilities on N Citron and IM CoLtd 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 N Citron with a short position of IM CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Citron and IM CoLtd.
Diversification Opportunities for N Citron and IM CoLtd
Excellent diversification
The 3 months correlation between 101400 and 101390 is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding N Citron and IM CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IM CoLtd and N Citron 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 N Citron are associated (or correlated) with IM CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IM CoLtd has no effect on the direction of N Citron i.e., N Citron and IM CoLtd go up and down completely randomly.
Pair Corralation between N Citron and IM CoLtd
Assuming the 90 days trading horizon N Citron is expected to under-perform the IM CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, N Citron is 1.69 times less risky than IM CoLtd. The stock trades about -0.01 of its potential returns per unit of risk. The IM CoLtd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 829,000 in IM CoLtd on February 7, 2024 and sell it today you would lose (15,000) from holding IM CoLtd or give up 1.81% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
N Citron vs. IM CoLtd
Performance |
Timeline |
N Citron |
IM CoLtd |
N Citron and IM CoLtd Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with N Citron and IM CoLtd
The main advantage of trading using opposite N Citron and IM CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Citron position performs unexpectedly, IM CoLtd 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 IM CoLtd will offset losses from the drop in IM CoLtd's long position.N Citron vs. Soulbrain Holdings Co | N Citron vs. NICE Total Cash | N Citron vs. Geumhwa Plant Service | N Citron vs. AfreecaTV Co |
IM CoLtd vs. Soulbrain Holdings Co | IM CoLtd vs. NICE Total Cash | IM CoLtd vs. Geumhwa Plant Service | IM CoLtd vs. AfreecaTV Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Transaction History View history of all your transactions and understand their impact on performance | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
CEOs Directory Screen CEOs from public companies around the world |