Correlation Between Citrine Global and Exmar NV

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

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

Diversification Opportunities for Citrine Global and Exmar NV

-0.12

Correlation Coefficient

Citrine Global  Exmar NV

Good diversification

The 3 months correlation between Citrine and Exmar is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citrine Global Corp and Exmar NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exmar NV and Citrine Global 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 Citrine Global Corp are associated (or correlated) with Exmar NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exmar NV has no effect on the direction of Citrine Global i.e., Citrine Global and Exmar NV go up and down completely randomly.

Pair Corralation between Citrine Global and Exmar NV

Given the investment horizon of 90 days Citrine Global is expected to generate 1.76 times less return on investment than Exmar NV. In addition to that, Citrine Global is 3.36 times more volatile than Exmar NV. It trades about 0.01 of its total potential returns per unit of risk. Exmar NV is currently generating about 0.08 per unit of volatility. If you would invest  283.00  in Exmar NV on October 11, 2024 and sell it today you would earn a total of  903.00  from holding Exmar NV or generate 319.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Citrine Global Corp  vs.  Exmar NV

Citrine Global Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Citrine Global Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Exmar NV

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Exmar NV are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Exmar NV reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citrine Global and Exmar NV

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

The idea behind Citrine Global Corp and Exmar NV 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.