Correlation Between Citadel Income and IShares Canadian
Can any of the company-specific risk be diversified away by investing in both Citadel Income and IShares Canadian 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 Canadian 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 Canadian HYBrid, you can compare the effects of market volatilities on Citadel Income and IShares Canadian 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 Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and IShares Canadian.
Diversification Opportunities for Citadel Income and IShares Canadian
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citadel and IShares is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and iShares Canadian HYBrid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian HYBrid 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 Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Canadian HYBrid has no effect on the direction of Citadel Income i.e., Citadel Income and IShares Canadian go up and down completely randomly.
Pair Corralation between Citadel Income and IShares Canadian
Assuming the 90 days trading horizon Citadel Income is expected to under-perform the IShares Canadian. In addition to that, Citadel Income is 4.74 times more volatile than iShares Canadian HYBrid. It trades about -0.01 of its total potential returns per unit of risk. iShares Canadian HYBrid is currently generating about 0.11 per unit of volatility. If you would invest 1,724 in iShares Canadian HYBrid on August 26, 2024 and sell it today you would earn a total of 230.00 from holding iShares Canadian HYBrid or generate 13.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citadel Income vs. iShares Canadian HYBrid
Performance |
| Timeline |
| Citadel Income |
| iShares Canadian HYBrid |
Citadel Income and IShares Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and IShares Canadian
The main advantage of trading using opposite Citadel Income and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, IShares Canadian 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 Canadian will offset losses from the drop in IShares Canadian's long position.| Citadel Income vs. Tech Leaders Income | Citadel Income vs. BetaPro SPTSX 60 | Citadel Income vs. Brompton Global Dividend | Citadel Income vs. Global X Active |
| IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
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.
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