Correlation Between Citadel Income and IShares SPTSX
Can any of the company-specific risk be diversified away by investing in both Citadel Income and IShares 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 IShares 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 iShares SPTSX Capped, you can compare the effects of market volatilities on Citadel Income and IShares 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 IShares SPTSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and IShares SPTSX.
Diversification Opportunities for Citadel Income and IShares SPTSX
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citadel and IShares is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and iShares SPTSX Capped in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SPTSX Capped 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 IShares SPTSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SPTSX Capped has no effect on the direction of Citadel Income i.e., Citadel Income and IShares SPTSX go up and down completely randomly.
Pair Corralation between Citadel Income and IShares SPTSX
Assuming the 90 days trading horizon Citadel Income is expected to under-perform the IShares SPTSX. In addition to that, Citadel Income is 1.83 times more volatile than iShares SPTSX Capped. It trades about -0.12 of its total potential returns per unit of risk. iShares SPTSX Capped is currently generating about 0.04 per unit of volatility. If you would invest 1,771 in iShares SPTSX Capped on August 29, 2024 and sell it today you would earn a total of 16.00 from holding iShares SPTSX Capped or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citadel Income vs. iShares SPTSX Capped
Performance |
| Timeline |
| Citadel Income |
| iShares SPTSX Capped |
Citadel Income and IShares SPTSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and IShares SPTSX
The main advantage of trading using opposite Citadel Income and IShares SPTSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, IShares 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 IShares SPTSX will offset losses from the drop in IShares SPTSX'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 |
| IShares SPTSX vs. iShares SPTSX Capped | IShares SPTSX vs. iShares SPTSX Global | IShares SPTSX vs. iShares SPTSX 60 | IShares SPTSX vs. iShares SPTSX Capped |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |