Correlation Between Citadel Income and MedMira
Can any of the company-specific risk be diversified away by investing in both Citadel Income and MedMira 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 MedMira into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citadel Income and MedMira, you can compare the effects of market volatilities on Citadel Income and MedMira 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 MedMira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and MedMira.
Diversification Opportunities for Citadel Income and MedMira
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citadel and MedMira is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and MedMira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MedMira 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 MedMira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MedMira has no effect on the direction of Citadel Income i.e., Citadel Income and MedMira go up and down completely randomly.
Pair Corralation between Citadel Income and MedMira
Assuming the 90 days trading horizon Citadel Income is expected to under-perform the MedMira. But the fund apears to be less risky and, when comparing its historical volatility, Citadel Income is 4.03 times less risky than MedMira. The fund trades about -0.01 of its potential returns per unit of risk. The MedMira is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 11.00 in MedMira on September 2, 2024 and sell it today you would lose (2.50) from holding MedMira or give up 22.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citadel Income vs. MedMira
Performance |
| Timeline |
| Citadel Income |
| MedMira |
Citadel Income and MedMira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and MedMira
The main advantage of trading using opposite Citadel Income and MedMira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, MedMira 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 MedMira will offset losses from the drop in MedMira'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 |
| MedMira vs. Advent Wireless | MedMira vs. Capstone Mining Corp | MedMira vs. Slate Grocery REIT | MedMira vs. Nicola Mining |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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