Correlation Between Appswarm and Coin Citadel

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

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

Diversification Opportunities for Appswarm and Coin Citadel

-0.15

Correlation Coefficient

Appswarm  Coin Citadel

Good diversification

The 3 months correlation between Appswarm and Coin is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Appswarm and Coin Citadel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coin Citadel and Appswarm 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 Appswarm 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 Appswarm i.e., Appswarm and Coin Citadel go up and down completely randomly.

Pair Corralation between Appswarm and Coin Citadel

Given the investment horizon of 90 days Appswarm is expected to generate 7.8 times less return on investment than Coin Citadel. But when comparing it to its historical volatility, Appswarm is 4.11 times less risky than Coin Citadel. It trades about 0.06 of its potential returns per unit of risk. Coin Citadel is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Coin Citadel on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Coin Citadel or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Appswarm  vs.  Coin Citadel

Appswarm

Risk-Adjusted Performance

5 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Appswarm are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Appswarm displayed solid returns over the last few months and may actually be approaching a breakup point.

Coin Citadel

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Coin Citadel are ranked lower than 8 (%) 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 Appswarm and Coin Citadel

The main advantage of trading using opposite Appswarm and Coin Citadel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Appswarm 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 Appswarm 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 Anywhere module to track or share privately all of your investments from the convenience of any device.