Correlation Between Citrix Systems and Hewlett Packard
Can any of the company-specific risk be diversified away by investing in both Citrix Systems and Hewlett Packard 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 Citrix Systems and Hewlett Packard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citrix Systems and Hewlett Packard Enterprise, you can compare the effects of market volatilities on Citrix Systems and Hewlett Packard 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 Citrix Systems with a short position of Hewlett Packard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrix Systems and Hewlett Packard.
Diversification Opportunities for Citrix Systems and Hewlett Packard
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citrix and Hewlett is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Citrix Systems and Hewlett Packard Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hewlett Packard Ente and Citrix Systems 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 Citrix Systems are associated (or correlated) with Hewlett Packard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hewlett Packard Ente has no effect on the direction of Citrix Systems i.e., Citrix Systems and Hewlett Packard go up and down completely randomly.
Pair Corralation between Citrix Systems and Hewlett Packard
If you would invest 1,368 in Hewlett Packard Enterprise on January 21, 2024 and sell it today you would earn a total of 311.00 from holding Hewlett Packard Enterprise or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Citrix Systems vs. Hewlett Packard Enterprise
Performance |
| Timeline |
| Citrix Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hewlett Packard Ente |
Citrix Systems and Hewlett Packard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citrix Systems and Hewlett Packard
The main advantage of trading using opposite Citrix Systems and Hewlett Packard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrix Systems position performs unexpectedly, Hewlett Packard 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 Hewlett Packard will offset losses from the drop in Hewlett Packard's long position.| Citrix Systems vs. Old Dominion Freight | Citrix Systems vs. Procter Gamble | Citrix Systems vs. Torm PLC Class | Citrix Systems vs. Hf Foods Group |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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