Correlation Between Coin Citadel and SP Global
Can any of the company-specific risk be diversified away by investing in both Coin Citadel and SP 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 Coin Citadel and SP Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coin Citadel and SP Global, you can compare the effects of market volatilities on Coin Citadel and SP 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 Coin Citadel with a short position of SP Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coin Citadel and SP Global.
Diversification Opportunities for Coin Citadel and SP Global
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coin and SPGI is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Coin Citadel and SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Global and Coin Citadel 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 Coin Citadel are associated (or correlated) with SP Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Global has no effect on the direction of Coin Citadel i.e., Coin Citadel and SP Global go up and down completely randomly.
Pair Corralation between Coin Citadel and SP Global
Given the investment horizon of 90 days Coin Citadel is expected to generate 40.26 times more return on investment than SP Global. However, Coin Citadel is 40.26 times more volatile than SP Global. It trades about 0.06 of its potential returns per unit of risk. SP Global is currently generating about -0.07 per unit of risk. If you would invest 0.02 in Coin Citadel on January 26, 2024 and sell it today you would lose (0.01) from holding Coin Citadel or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coin Citadel vs. SP Global
Performance |
| Timeline |
| Coin Citadel |
| SP Global |
Coin Citadel and SP Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coin Citadel and SP Global
The main advantage of trading using opposite Coin Citadel and SP Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coin Citadel position performs unexpectedly, SP 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 SP Global will offset losses from the drop in SP Global's long position.| Coin Citadel vs. Rivian Automotive | Coin Citadel vs. Nio Class A | Coin Citadel vs. Xpeng Inc | Coin Citadel vs. Mullen Automotive |
| SP Global vs. Dun Bradstreet Holdings | SP Global vs. Intercontinental Exchange | SP Global vs. Nasdaq Inc | SP Global vs. CME Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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