Correlation Between Citadel Income and Keyera Corp
Can any of the company-specific risk be diversified away by investing in both Citadel Income and Keyera Corp 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 Keyera Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citadel Income and Keyera Corp, you can compare the effects of market volatilities on Citadel Income and Keyera Corp 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 Keyera Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and Keyera Corp.
Diversification Opportunities for Citadel Income and Keyera Corp
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citadel and Keyera is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and Keyera Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyera Corp 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 Keyera Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyera Corp has no effect on the direction of Citadel Income i.e., Citadel Income and Keyera Corp go up and down completely randomly.
Pair Corralation between Citadel Income and Keyera Corp
Assuming the 90 days trading horizon Citadel Income is expected to generate 1.92 times more return on investment than Keyera Corp. However, Citadel Income is 1.92 times more volatile than Keyera Corp. It trades about 0.06 of its potential returns per unit of risk. Keyera Corp is currently generating about 0.05 per unit of risk. If you would invest 246.00 in Citadel Income on December 31, 2024 and sell it today you would earn a total of 30.00 from holding Citadel Income or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.29% |
| Values | Daily Returns |
Citadel Income vs. Keyera Corp
Performance |
| Timeline |
| Citadel Income |
| Keyera Corp |
Citadel Income and Keyera Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and Keyera Corp
The main advantage of trading using opposite Citadel Income and Keyera Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, Keyera Corp 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 Keyera Corp will offset losses from the drop in Keyera Corp's long position.| Citadel Income vs. Blue Ribbon Income | ||
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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