Correlation Between Citadel Income and IShares Fundamental
Can any of the company-specific risk be diversified away by investing in both Citadel Income and IShares Fundamental 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 Citadel Income and IShares Fundamental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citadel Income and iShares Fundamental Hedged, you can compare the effects of market volatilities on Citadel Income and IShares Fundamental 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 Citadel Income with a short position of IShares Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and IShares Fundamental.
Diversification Opportunities for Citadel Income and IShares Fundamental
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citadel and IShares is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and iShares Fundamental Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Fundamental and Citadel Income 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 Citadel Income are associated (or correlated) with IShares Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Fundamental has no effect on the direction of Citadel Income i.e., Citadel Income and IShares Fundamental go up and down completely randomly.
Pair Corralation between Citadel Income and IShares Fundamental
Assuming the 90 days trading horizon Citadel Income is expected to under-perform the IShares Fundamental. In addition to that, Citadel Income is 2.66 times more volatile than iShares Fundamental Hedged. It trades about -0.13 of its total potential returns per unit of risk. iShares Fundamental Hedged is currently generating about 0.2 per unit of volatility. If you would invest 5,492 in iShares Fundamental Hedged on August 29, 2024 and sell it today you would earn a total of 202.00 from holding iShares Fundamental Hedged or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citadel Income vs. iShares Fundamental Hedged
Performance |
| Timeline |
| Citadel Income |
| iShares Fundamental |
Citadel Income and IShares Fundamental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and IShares Fundamental
The main advantage of trading using opposite Citadel Income and IShares Fundamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, IShares Fundamental 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 IShares Fundamental will offset losses from the drop in IShares Fundamental's long position.| Citadel Income vs. Tech Leaders Income | Citadel Income vs. BetaPro SPTSX 60 | Citadel Income vs. Brompton Global Dividend | Citadel Income vs. Global X Active |
| IShares Fundamental vs. Global Atomic Corp | IShares Fundamental vs. enCore Energy Corp | IShares Fundamental vs. Fission Uranium Corp | IShares Fundamental vs. NexGen Energy |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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