Correlation Between Halitron and Coin Citadel

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

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

Diversification Opportunities for Halitron and Coin Citadel

0.0

Correlation Coefficient

Halitron  Coin Citadel

Pay attention - limited upside

The 3 months correlation between Halitron and Coin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Halitron and Coin Citadel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coin Citadel and Halitron 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 Halitron 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 Halitron i.e., Halitron and Coin Citadel go up and down completely randomly.

Pair Corralation between Halitron and Coin Citadel

If you would invest  0.02  in Coin Citadel on December 28, 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	98.36%
Values	Daily Returns

Halitron  vs.  Coin Citadel

Halitron

Risk-Adjusted Performance

Very Weak

Over the last 90 days Halitron has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Halitron is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Coin Citadel

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coin Citadel are ranked lower than 3 (%) 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 Halitron and Coin Citadel

The main advantage of trading using opposite Halitron and Coin Citadel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halitron 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 Halitron 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.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.