Correlation Between Citadel Income and Dye Durham
Can any of the company-specific risk be diversified away by investing in both Citadel Income and Dye Durham 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 Dye Durham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citadel Income and Dye Durham, you can compare the effects of market volatilities on Citadel Income and Dye Durham 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 Dye Durham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and Dye Durham.
Diversification Opportunities for Citadel Income and Dye Durham
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citadel and Dye is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and Dye Durham in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dye Durham 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 Dye Durham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dye Durham has no effect on the direction of Citadel Income i.e., Citadel Income and Dye Durham go up and down completely randomly.
Pair Corralation between Citadel Income and Dye Durham
Assuming the 90 days trading horizon Citadel Income is expected to generate 0.59 times more return on investment than Dye Durham. However, Citadel Income is 1.7 times less risky than Dye Durham. It trades about 0.04 of its potential returns per unit of risk. Dye Durham is currently generating about 0.0 per unit of risk. If you would invest 219.00 in Citadel Income on November 19, 2024 and sell it today you would earn a total of 62.00 from holding Citadel Income or generate 28.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 82.86% |
| Values | Daily Returns |
Citadel Income vs. Dye Durham
Performance |
| Timeline |
| Citadel Income |
| Dye Durham |
Citadel Income and Dye Durham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and Dye Durham
The main advantage of trading using opposite Citadel Income and Dye Durham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, Dye Durham 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 Dye Durham will offset losses from the drop in Dye Durham'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 |
| Dye Durham vs. Docebo Inc | Dye Durham vs. Enghouse Systems | Dye Durham vs. Kinaxis | Dye Durham vs. Real Matters |
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 CEOs Directory module to screen CEOs from public companies around the world.
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