Correlation Between Coin Citadel and Global Arena

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

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

Diversification Opportunities for Coin Citadel and Global Arena

0.0

Correlation Coefficient

Coin Citadel  Global Arena

Pay attention - limited upside

The 3 months correlation between Coin and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coin Citadel and Global Arena Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Arena Holding and Coin Citadel 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 Coin Citadel are associated (or correlated) with Global Arena. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Arena Holding has no effect on the direction of Coin Citadel i.e., Coin Citadel and Global Arena go up and down completely randomly.

Pair Corralation between Coin Citadel and Global Arena

If you would invest  0.02  in Coin Citadel on December 2, 2024 and sell it today you would lose (0.01) from holding Coin Citadel or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Coin Citadel  vs.  Global Arena Holding

Coin Citadel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Coin Citadel are ranked lower than 11 (%) 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.

Global Arena Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Arena Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Global Arena is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Coin Citadel and Global Arena

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

The idea behind Coin Citadel and Global Arena Holding 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.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.