Correlation Between Ijj and Citrine Global

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

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

Diversification Opportunities for Ijj and Citrine Global

0.11

Correlation Coefficient

Ijj  Citrine Global

Average diversification

The 3 months correlation between Ijj and Citrine is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ijj Corp. and Citrine Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citrine Global Corp and Ijj 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 Ijj Corporation are associated (or correlated) with Citrine Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citrine Global Corp has no effect on the direction of Ijj i.e., Ijj and Citrine Global go up and down completely randomly.

Pair Corralation between Ijj and Citrine Global

If you would invest  0.03  in Ijj Corporation on October 10, 2024 and sell it today you would earn a total of  0.02  from holding Ijj Corporation or generate 66.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Ijj Corp.  vs.  Citrine Global Corp

Ijj Corporation

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ijj Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain forward-looking indicators, Ijj reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Ijj and Citrine Global

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

The idea behind Ijj Corporation and Citrine Global Corp 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.