Correlation Between DelphX Capital and Citadel Income

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

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

Diversification Opportunities for DelphX Capital and Citadel Income

-0.5

Correlation Coefficient

DelphX Capital  Citadel Income

Very good diversification

The 3 months correlation between DelphX and Citadel is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding DelphX Capital Markets and Citadel Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citadel Income and DelphX Capital 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 DelphX Capital Markets 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 DelphX Capital i.e., DelphX Capital and Citadel Income go up and down completely randomly.

Pair Corralation between DelphX Capital and Citadel Income

Assuming the 90 days trading horizon DelphX Capital Markets is expected to under-perform the Citadel Income. In addition to that, DelphX Capital is 4.89 times more volatile than Citadel Income. It trades about -0.02 of its total potential returns per unit of risk. Citadel Income is currently generating about 0.16 per unit of volatility. If you would invest  245.00  in Citadel Income on December 1, 2024 and sell it today you would earn a total of  40.00  from holding Citadel Income or generate 16.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

DelphX Capital Markets  vs.  Citadel Income

DelphX Capital Markets

Risk-Adjusted Performance

Very Weak

Over the last 90 days DelphX Capital Markets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Citadel Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citadel Income are ranked lower than 12 (%) 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 DelphX Capital and Citadel Income

The main advantage of trading using opposite DelphX Capital and Citadel Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DelphX Capital 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 DelphX Capital Markets 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.