Correlation Between Citadel Income and DelphX Capital
Can any of the company-specific risk be diversified away by investing in both Citadel Income and DelphX Capital 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 DelphX Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citadel Income and DelphX Capital Markets, you can compare the effects of market volatilities on Citadel Income and DelphX Capital 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 DelphX Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and DelphX Capital.
Diversification Opportunities for Citadel Income and DelphX Capital
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citadel and DelphX is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and DelphX Capital Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DelphX Capital Markets 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 DelphX Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DelphX Capital Markets has no effect on the direction of Citadel Income i.e., Citadel Income and DelphX Capital go up and down completely randomly.
Pair Corralation between Citadel Income and DelphX Capital
Assuming the 90 days trading horizon Citadel Income is expected to generate 0.33 times more return on investment than DelphX Capital. However, Citadel Income is 3.03 times less risky than DelphX Capital. It trades about -0.12 of its potential returns per unit of risk. DelphX Capital Markets is currently generating about -0.12 per unit of risk. If you would invest 269.00 in Citadel Income on August 29, 2024 and sell it today you would lose (17.00) from holding Citadel Income or give up 6.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citadel Income vs. DelphX Capital Markets
Performance |
| Timeline |
| Citadel Income |
| DelphX Capital Markets |
Citadel Income and DelphX Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and DelphX Capital
The main advantage of trading using opposite Citadel Income and DelphX Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, DelphX Capital 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 DelphX Capital will offset losses from the drop in DelphX Capital's long position.| Citadel Income vs. Blue Ribbon Income | Citadel Income vs. MINT Income Fund | Citadel Income vs. Energy Income | Citadel Income vs. Canadian High Income |
| DelphX Capital vs. Computer Modelling Group | DelphX Capital vs. Algoma Steel Group | DelphX Capital vs. Costco Wholesale Corp | DelphX Capital vs. Converge Technology Solutions |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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