Correlation Between Citrine Global and SST WT

Can any of the company-specific risk be diversified away by investing in both Citrine Global and SST WT 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 SST WT 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 SST WT, you can compare the effects of market volatilities on Citrine Global and SST WT 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 SST WT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrine Global and SST WT.

Diversification Opportunities for Citrine Global and SST WT

-0.47

Correlation Coefficient

Citrine Global  SST WT

Very good diversification

The 3 months correlation between Citrine and SST is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Citrine Global Corp and SST WT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SST WT 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 SST WT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SST WT has no effect on the direction of Citrine Global i.e., Citrine Global and SST WT go up and down completely randomly.

Pair Corralation between Citrine Global and SST WT

Given the investment horizon of 90 days Citrine Global Corp is expected to under-perform the SST WT. But the pink sheet apears to be less risky and, when comparing its historical volatility, Citrine Global Corp is 3.09 times less risky than SST WT. The pink sheet trades about -0.13 of its potential returns per unit of risk. The SST WT is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1.12  in SST WT on December 20, 2024 and sell it today you would earn a total of  0.62  from holding SST WT or generate 55.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	74.6%
Values	Daily Returns

Citrine Global Corp  vs.  SST WT

Citrine Global Corp

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

SST WT

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SST WT are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SST WT unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citrine Global and SST WT

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

The idea behind Citrine Global Corp and SST WT 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 Anywhere module to track or share privately all of your investments from the convenience of any device.