Correlation Between Citadel Income and TC Energy
Can any of the company-specific risk be diversified away by investing in both Citadel Income and TC Energy 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 TC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citadel Income and TC Energy Corp, you can compare the effects of market volatilities on Citadel Income and TC Energy 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 TC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and TC Energy.
Diversification Opportunities for Citadel Income and TC Energy
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citadel and TRP is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and TC Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Energy 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 TC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Energy Corp has no effect on the direction of Citadel Income i.e., Citadel Income and TC Energy go up and down completely randomly.
Pair Corralation between Citadel Income and TC Energy
Assuming the 90 days trading horizon Citadel Income is expected to generate 1.36 times more return on investment than TC Energy. However, Citadel Income is 1.36 times more volatile than TC Energy Corp. It trades about 0.24 of its potential returns per unit of risk. TC Energy Corp is currently generating about -0.13 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. TC Energy Corp
Performance |
| Timeline |
| Citadel Income |
| TC Energy Corp |
Citadel Income and TC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and TC Energy
The main advantage of trading using opposite Citadel Income and TC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, TC Energy 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 TC Energy will offset losses from the drop in TC Energy'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 |
| TC Energy vs. Enbridge | TC Energy vs. BCE Inc | TC Energy vs. Fortis Inc | TC Energy vs. Pembina Pipeline Corp |
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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |