Correlation Between Citicore Energy and Bank of the

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

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

Diversification Opportunities for Citicore Energy and Bank of the

-0.39

Correlation Coefficient

Citicore Energy  Bank of the

Very good diversification

The 3 months correlation between Citicore and Bank is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citicore Energy REIT and Bank of the in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of the and Citicore Energy 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 Citicore Energy REIT are associated (or correlated) with Bank of the. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of the has no effect on the direction of Citicore Energy i.e., Citicore Energy and Bank of the go up and down completely randomly.

Pair Corralation between Citicore Energy and Bank of the

Assuming the 90 days trading horizon Citicore Energy REIT is expected to generate 0.49 times more return on investment than Bank of the. However, Citicore Energy REIT is 2.03 times less risky than Bank of the. It trades about 0.27 of its potential returns per unit of risk. Bank of the is currently generating about -0.07 per unit of risk. If you would invest  317.00  in Citicore Energy REIT on April 20, 2025 and sell it today you would earn a total of  49.00  from holding Citicore Energy REIT or generate 15.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Citicore Energy REIT  vs.  Bank of the

Citicore Energy REIT

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citicore Energy REIT are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Citicore Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Bank of the

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bank of the has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Citicore Energy and Bank of the

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

The idea behind Citicore Energy REIT and Bank of the 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.