Correlation Between ICOA and Coin Citadel

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

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

Diversification Opportunities for ICOA and Coin Citadel

0.0

Correlation Coefficient

ICOA  Coin Citadel

Pay attention - limited upside

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

Pair Corralation between ICOA and Coin Citadel

Given the investment horizon of 90 days ICOA Inc is expected to under-perform the Coin Citadel. But the pink sheet apears to be less risky and, when comparing its historical volatility, ICOA Inc is 1.77 times less risky than Coin Citadel. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Coin Citadel is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  0.05  in Coin Citadel on September 4, 2024 and sell it today you would lose (0.04) from holding Coin Citadel or give up 80.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

ICOA Inc  vs.  Coin Citadel

ICOA Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ICOA Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Coin Citadel

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Coin Citadel are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Coin Citadel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ICOA and Coin Citadel

The main advantage of trading using opposite ICOA and Coin Citadel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICOA 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 ICOA Inc 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..