Correlation Between GreenBank Capital and Coin Citadel

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

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

Diversification Opportunities for GreenBank Capital and Coin Citadel

0.19

Correlation Coefficient

GreenBank Capital  Coin Citadel

Average diversification

The 3 months correlation between GreenBank and Coin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding GreenBank Capital and Coin Citadel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coin Citadel and GreenBank Capital 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 GreenBank Capital 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 GreenBank Capital i.e., GreenBank Capital and Coin Citadel go up and down completely randomly.

Pair Corralation between GreenBank Capital and Coin Citadel

Assuming the 90 days horizon GreenBank Capital is expected to generate 2.13 times more return on investment than Coin Citadel. However, GreenBank Capital is 2.13 times more volatile than Coin Citadel. It trades about 0.16 of its potential returns per unit of risk. Coin Citadel is currently generating about 0.06 per unit of risk. If you would invest  0.45  in GreenBank Capital on May 5, 2025 and sell it today you would earn a total of  1.01  from holding GreenBank Capital or generate 224.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

GreenBank Capital  vs.  Coin Citadel

GreenBank Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GreenBank Capital are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental drivers, GreenBank Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Coin Citadel

Risk-Adjusted Performance

Insignificant

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.

Pair Trading with GreenBank Capital and Coin Citadel

The main advantage of trading using opposite GreenBank Capital and Coin Citadel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenBank Capital 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 GreenBank Capital 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.