Correlation Between Citadel Income and BetaPro SPTSX
Can any of the company-specific risk be diversified away by investing in both Citadel Income and BetaPro SPTSX 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 BetaPro SPTSX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citadel Income and BetaPro SPTSX 60, you can compare the effects of market volatilities on Citadel Income and BetaPro SPTSX 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 BetaPro SPTSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and BetaPro SPTSX.
Diversification Opportunities for Citadel Income and BetaPro SPTSX
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citadel and BetaPro is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and BetaPro SPTSX 60 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro SPTSX 60 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 BetaPro SPTSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro SPTSX 60 has no effect on the direction of Citadel Income i.e., Citadel Income and BetaPro SPTSX go up and down completely randomly.
Pair Corralation between Citadel Income and BetaPro SPTSX
Assuming the 90 days trading horizon Citadel Income is expected to generate 2.24 times more return on investment than BetaPro SPTSX. However, Citadel Income is 2.24 times more volatile than BetaPro SPTSX 60. It trades about -0.01 of its potential returns per unit of risk. BetaPro SPTSX 60 is currently generating about -0.08 per unit of risk. If you would invest 284.00 in Citadel Income on August 26, 2024 and sell it today you would lose (24.00) from holding Citadel Income or give up 8.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citadel Income vs. BetaPro SPTSX 60
Performance |
| Timeline |
| Citadel Income |
| BetaPro SPTSX 60 |
Citadel Income and BetaPro SPTSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and BetaPro SPTSX
The main advantage of trading using opposite Citadel Income and BetaPro SPTSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, BetaPro SPTSX 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 BetaPro SPTSX will offset losses from the drop in BetaPro SPTSX'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 |
| BetaPro SPTSX vs. BetaPro SP 500 | BetaPro SPTSX vs. BetaPro SPTSX 60 | BetaPro SPTSX vs. BetaPro Gold Bullion | BetaPro SPTSX vs. BetaPro SP TSX |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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