Correlation Between Citrix Systems and International Business
Can any of the company-specific risk be diversified away by investing in both Citrix Systems and International Business 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 International Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citrix Systems and International Business Machines, you can compare the effects of market volatilities on Citrix Systems and International Business 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 International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrix Systems and International Business.
Diversification Opportunities for Citrix Systems and International Business
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citrix and International is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citrix Systems and International Business Machine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Citrix Systems i.e., Citrix Systems and International Business go up and down completely randomly.
Pair Corralation between Citrix Systems and International Business
If you would invest 18,413 in International Business Machines on January 26, 2024 and sell it today you would lose (3.00) from holding International Business Machines or give up 0.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Citrix Systems vs. International Business Machine
Performance |
| Timeline |
| Citrix Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| International Business |
Citrix Systems and International Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citrix Systems and International Business
The main advantage of trading using opposite Citrix Systems and International Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrix Systems position performs unexpectedly, International Business 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 International Business will offset losses from the drop in International Business' long position.| Citrix Systems vs. US Silica Holdings | Citrix Systems vs. Playa Hotels Resorts | Citrix Systems vs. Western Acquisition Ventures | Citrix Systems vs. Encore Wire |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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