Correlation Between WaveFront All and Citadel Income
Can any of the company-specific risk be diversified away by investing in both WaveFront All 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 WaveFront All and Citadel Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WaveFront All Weather Alternative and Citadel Income, you can compare the effects of market volatilities on WaveFront All 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 WaveFront All with a short position of Citadel Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of WaveFront All and Citadel Income.
Diversification Opportunities for WaveFront All and Citadel Income
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WaveFront and Citadel is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding WaveFront All Weather Alternat and Citadel Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citadel Income and WaveFront All 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 WaveFront All Weather Alternative 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 WaveFront All i.e., WaveFront All and Citadel Income go up and down completely randomly.
Pair Corralation between WaveFront All and Citadel Income
Assuming the 90 days trading horizon WaveFront All is expected to generate 2.2 times less return on investment than Citadel Income. But when comparing it to its historical volatility, WaveFront All Weather Alternative is 3.11 times less risky than Citadel Income. It trades about 0.17 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 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 | Significant |
Accuracy | 96.88% |
Values | Daily Returns |
WaveFront All Weather Alternat vs. Citadel Income
Performance |
Timeline |
WaveFront All Weather |
Citadel Income |
WaveFront All and Citadel Income Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WaveFront All and Citadel Income
The main advantage of trading using opposite WaveFront All and Citadel Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WaveFront All 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.WaveFront All vs. Fidelity Tactical High | WaveFront All vs. RBC Canadian Equity | WaveFront All vs. Symphony Floating Rate | WaveFront All vs. Edgepoint Cdn Growth |
Citadel Income vs. Energy Income | Citadel Income vs. MINT Income Fund | Citadel Income vs. Precious Metals And | Citadel Income vs. Blue Ribbon Income |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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