Correlation Between Citadel Income and Laurentian Bank
Can any of the company-specific risk be diversified away by investing in both Citadel Income and Laurentian Bank 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 Laurentian Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citadel Income and Laurentian Bank, you can compare the effects of market volatilities on Citadel Income and Laurentian Bank 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 Laurentian Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and Laurentian Bank.
Diversification Opportunities for Citadel Income and Laurentian Bank
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citadel and Laurentian is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and Laurentian Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laurentian Bank 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 Laurentian Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laurentian Bank has no effect on the direction of Citadel Income i.e., Citadel Income and Laurentian Bank go up and down completely randomly.
Pair Corralation between Citadel Income and Laurentian Bank
Assuming the 90 days trading horizon Citadel Income is expected to generate 1.96 times more return on investment than Laurentian Bank. However, Citadel Income is 1.96 times more volatile than Laurentian Bank. It trades about 0.24 of its potential returns per unit of risk. Laurentian Bank is currently generating about -0.06 per unit of risk. If you would invest 257.00 in Citadel Income on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Citadel Income or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citadel Income vs. Laurentian Bank
Performance |
| Timeline |
| Citadel Income |
| Laurentian Bank |
Citadel Income and Laurentian Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and Laurentian Bank
The main advantage of trading using opposite Citadel Income and Laurentian Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, Laurentian Bank 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 Laurentian Bank will offset losses from the drop in Laurentian Bank'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 |
| Laurentian Bank vs. Canadian Western Bank | Laurentian Bank vs. National Bank of | Laurentian Bank vs. Canadian Imperial Bank | Laurentian Bank vs. Great West Lifeco |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |