Correlation Between Citadel Income and High Tide
Can any of the company-specific risk be diversified away by investing in both Citadel Income and High Tide 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 High Tide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citadel Income and High Tide, you can compare the effects of market volatilities on Citadel Income and High Tide 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 High Tide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and High Tide.
Diversification Opportunities for Citadel Income and High Tide
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citadel and High is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and High Tide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Tide 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 High Tide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Tide has no effect on the direction of Citadel Income i.e., Citadel Income and High Tide go up and down completely randomly.
Pair Corralation between Citadel Income and High Tide
Assuming the 90 days trading horizon Citadel Income is expected to generate 20.21 times less return on investment than High Tide. But when comparing it to its historical volatility, Citadel Income is 2.2 times less risky than High Tide. It trades about 0.02 of its potential returns per unit of risk. High Tide is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 386.00 in High Tide on September 14, 2024 and sell it today you would earn a total of 63.00 from holding High Tide or generate 16.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citadel Income vs. High Tide
Performance |
| Timeline |
| Citadel Income |
| High Tide |
Citadel Income and High Tide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and High Tide
The main advantage of trading using opposite Citadel Income and High Tide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, High Tide 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 High Tide will offset losses from the drop in High Tide'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 |
| High Tide vs. DelphX Capital Markets | High Tide vs. Citadel Income | High Tide vs. iShares Canadian HYBrid | High Tide vs. Altagas Cum Red |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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