Correlation Between Coin Citadel and PDF Solutions

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

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

Diversification Opportunities for Coin Citadel and PDF Solutions

-0.17

Correlation Coefficient

Coin Citadel  PDF Solutions

Good diversification

The 3 months correlation between Coin and PDF is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Coin Citadel and PDF Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PDF Solutions 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 PDF Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PDF Solutions has no effect on the direction of Coin Citadel i.e., Coin Citadel and PDF Solutions go up and down completely randomly.

Pair Corralation between Coin Citadel and PDF Solutions

Given the investment horizon of 90 days Coin Citadel is expected to generate 4.93 times more return on investment than PDF Solutions. However, Coin Citadel is 4.93 times more volatile than PDF Solutions. It trades about 0.06 of its potential returns per unit of risk. PDF Solutions is currently generating about 0.03 per unit of risk. If you would invest  0.01  in Coin Citadel on May 21, 2025 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	98.39%
Values	Daily Returns

Coin Citadel  vs.  PDF Solutions

Coin Citadel

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Coin Citadel are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Coin Citadel disclosed solid returns over the last few months and may actually be approaching a breakup point.

PDF Solutions

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PDF Solutions are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, PDF Solutions is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Coin Citadel and PDF Solutions

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

The idea behind Coin Citadel and PDF Solutions 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.