Correlation Between Citadel Income and Energy Income

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

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

Diversification Opportunities for Citadel Income and Energy Income

0.47

Correlation Coefficient

Citadel Income  Energy Income

Very weak diversification

The 3 months correlation between Citadel and Energy is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and Energy Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Income 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 Energy Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Income has no effect on the direction of Citadel Income i.e., Citadel Income and Energy Income go up and down completely randomly.

Pair Corralation between Citadel Income and Energy Income

Assuming the 90 days trading horizon Citadel Income is expected to generate 0.82 times more return on investment than Energy Income. However, Citadel Income is 1.21 times less risky than Energy Income. It trades about 0.12 of its potential returns per unit of risk. Energy Income is currently generating about 0.05 per unit of risk. If you would invest  244.00  in Citadel Income on April 20, 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

Citadel Income  vs.  Energy Income

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.

Energy Income

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Energy Income are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Energy Income may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Citadel Income and Energy Income

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

The idea behind Citadel Income and Energy 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.