Correlation Between RBC Portefeuille and Citadel Income

Can any of the company-specific risk be diversified away by investing in both RBC Portefeuille and Citadel Income 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 RBC Portefeuille and Citadel Income into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between RBC Portefeuille de and Citadel Income, you can compare the effects of market volatilities on RBC Portefeuille and Citadel Income 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 RBC Portefeuille with a short position of Citadel Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Portefeuille and Citadel Income.

Diversification Opportunities for RBC Portefeuille and Citadel Income

0.41

Correlation Coefficient

RBC Portefeuille  Citadel Income

Very weak diversification

The 3 months correlation between RBC and Citadel is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding RBC Portefeuille de and Citadel Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citadel Income and RBC Portefeuille 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 RBC Portefeuille de are associated (or correlated) with Citadel Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citadel Income has no effect on the direction of RBC Portefeuille i.e., RBC Portefeuille and Citadel Income go up and down completely randomly.

Pair Corralation between RBC Portefeuille and Citadel Income

Assuming the 90 days trading horizon RBC Portefeuille is expected to generate 1.28 times less return on investment than Citadel Income. But when comparing it to its historical volatility, RBC Portefeuille de is 3.98 times less risky than Citadel Income. It trades about 0.37 of its potential returns per unit of risk. Citadel Income is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  244.00  in Citadel Income on April 21, 2025 and sell it today you would earn a total of  35.00  from holding Citadel Income or generate 14.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

RBC Portefeuille de  vs.  Citadel Income

RBC Portefeuille

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in RBC Portefeuille de are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, RBC Portefeuille may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Citadel Income

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citadel Income are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak technical and fundamental indicators, Citadel Income sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RBC Portefeuille and Citadel Income

The main advantage of trading using opposite RBC Portefeuille and Citadel Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Portefeuille position performs unexpectedly, Citadel Income 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 Citadel Income will offset losses from the drop in Citadel Income's long position.

The idea behind RBC Portefeuille de and Citadel Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.