Correlation Between MGT Capital and Coin Citadel

Can any of the company-specific risk be diversified away by investing in both MGT Capital and Coin Citadel 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 MGT Capital and Coin Citadel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MGT Capital Investments and Coin Citadel, you can compare the effects of market volatilities on MGT Capital and Coin Citadel 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 MGT Capital with a short position of Coin Citadel. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGT Capital and Coin Citadel.

Diversification Opportunities for MGT Capital and Coin Citadel

0.19

Correlation Coefficient

MGT Capital  Coin Citadel

Average diversification

The 3 months correlation between MGT and Coin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding MGT Capital Investments and Coin Citadel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coin Citadel and MGT Capital 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 MGT Capital Investments are associated (or correlated) with Coin Citadel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coin Citadel has no effect on the direction of MGT Capital i.e., MGT Capital and Coin Citadel go up and down completely randomly.

Pair Corralation between MGT Capital and Coin Citadel

If you would invest  0.01  in Coin Citadel on August 26, 2024 and sell it today you would earn a total of  0.00  from holding Coin Citadel or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

MGT Capital Investments  vs.  Coin Citadel

MGT Capital Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MGT Capital Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, MGT Capital is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Coin Citadel

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Coin Citadel are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Coin Citadel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MGT Capital and Coin Citadel

The main advantage of trading using opposite MGT Capital and Coin Citadel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGT Capital position performs unexpectedly, Coin Citadel 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 Coin Citadel will offset losses from the drop in Coin Citadel's long position.

The idea behind MGT Capital Investments and Coin Citadel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.