Correlation Between CiT and Riskified

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

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

Diversification Opportunities for CiT and Riskified

-0.13

Correlation Coefficient

CiT  Riskified

Good diversification

The 3 months correlation between CiT and Riskified is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding CiT Inc and Riskified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riskified and CiT 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 CiT Inc are associated (or correlated) with Riskified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riskified has no effect on the direction of CiT i.e., CiT and Riskified go up and down completely randomly.

Pair Corralation between CiT and Riskified

Given the investment horizon of 90 days CiT Inc is expected to under-perform the Riskified. In addition to that, CiT is 1.38 times more volatile than Riskified. It trades about -0.06 of its total potential returns per unit of risk. Riskified is currently generating about 0.07 per unit of volatility. If you would invest  460.00  in Riskified on September 12, 2025 and sell it today you would earn a total of  39.00  from holding Riskified or generate 8.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CiT Inc  vs.  Riskified

CiT Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CiT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Riskified

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Riskified are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward-looking signals, Riskified may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with CiT and Riskified

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

The idea behind CiT Inc and Riskified 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.