Correlation Between Citadel Income and Corus Entertainment

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

By analyzing existing cross correlation between Citadel Income and Corus Entertainment, you can compare the effects of market volatilities on Citadel Income and Corus Entertainment 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 Corus Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and Corus Entertainment.

Diversification Opportunities for Citadel Income and Corus Entertainment

-0.26

Correlation Coefficient

Citadel Income  Corus Entertainment

Very good diversification

The 3 months correlation between Citadel and Corus is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and Corus Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corus Entertainment 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 Corus Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corus Entertainment has no effect on the direction of Citadel Income i.e., Citadel Income and Corus Entertainment go up and down completely randomly.

Pair Corralation between Citadel Income and Corus Entertainment

Assuming the 90 days trading horizon Citadel Income is expected to generate 0.44 times more return on investment than Corus Entertainment. However, Citadel Income is 2.25 times less risky than Corus Entertainment. It trades about 0.12 of its potential returns per unit of risk. Corus Entertainment is currently generating about -0.01 per unit of risk. If you would invest  245.00  in Citadel Income on April 22, 2025 and sell it today you would earn a total of  34.00  from holding Citadel Income or generate 13.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Citadel Income  vs.  Corus Entertainment

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.

Corus Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corus Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Corus Entertainment is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Citadel Income and Corus Entertainment

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

The idea behind Citadel Income and Corus Entertainment 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.