Correlation Between Altagas Cum and Citadel Income

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

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

Diversification Opportunities for Altagas Cum and Citadel Income

-0.08

Correlation Coefficient

Altagas Cum  Citadel Income

Good diversification

The 3 months correlation between Altagas and Citadel is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Altagas Cum Red and Citadel Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citadel Income and Altagas Cum 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 Altagas Cum Red 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 Altagas Cum i.e., Altagas Cum and Citadel Income go up and down completely randomly.

Pair Corralation between Altagas Cum and Citadel Income

Assuming the 90 days trading horizon Altagas Cum Red is expected to generate 0.28 times more return on investment than Citadel Income. However, Altagas Cum Red is 3.52 times less risky than Citadel Income. It trades about 0.56 of its potential returns per unit of risk. Citadel Income is currently generating about 0.11 per unit of risk. If you would invest  1,900  in Altagas Cum Red on September 22, 2024 and sell it today you would earn a total of  120.00  from holding Altagas Cum Red or generate 6.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Altagas Cum Red  vs.  Citadel Income

Altagas Cum Red

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Altagas Cum Red are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal basic indicators, Altagas Cum may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Citadel Income

Risk-Adjusted Performance

4 of 100

Insignificant

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

Pair Trading with Altagas Cum and Citadel Income

The main advantage of trading using opposite Altagas Cum and Citadel Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altagas Cum 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 Altagas Cum Red 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.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.