Correlation Between MINT Income and Citadel Income

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

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

Diversification Opportunities for MINT Income and Citadel Income

0.56

Correlation Coefficient

MINT Income  Citadel Income

Very weak diversification

The 3 months correlation between MINT and Citadel is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding MINT Income Fund and Citadel Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citadel Income and MINT 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 MINT Income Fund 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 MINT Income i.e., MINT Income and Citadel Income go up and down completely randomly.

Pair Corralation between MINT Income and Citadel Income

Assuming the 90 days trading horizon MINT Income is expected to generate 1.14 times less return on investment than Citadel Income. But when comparing it to its historical volatility, MINT Income Fund is 2.24 times less risky than Citadel Income. It trades about 0.23 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  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 Together
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

MINT Income Fund  vs.  Citadel Income

MINT Income Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MINT Income Fund are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, MINT Income sustained solid returns over the last few months and may actually be approaching a breakup point.

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 MINT Income and Citadel Income

The main advantage of trading using opposite MINT Income and Citadel Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINT Income 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 MINT Income Fund 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.