Correlation Between Citadel Income and Tarku Resources
Can any of the company-specific risk be diversified away by investing in both Citadel Income and Tarku Resources 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 Tarku Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citadel Income and Tarku Resources, you can compare the effects of market volatilities on Citadel Income and Tarku Resources 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 Tarku Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and Tarku Resources.
Diversification Opportunities for Citadel Income and Tarku Resources
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citadel and Tarku is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and Tarku Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tarku Resources 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 Tarku Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tarku Resources has no effect on the direction of Citadel Income i.e., Citadel Income and Tarku Resources go up and down completely randomly.
Pair Corralation between Citadel Income and Tarku Resources
Assuming the 90 days trading horizon Citadel Income is expected to under-perform the Tarku Resources. But the fund apears to be less risky and, when comparing its historical volatility, Citadel Income is 9.31 times less risky than Tarku Resources. The fund trades about 0.0 of its potential returns per unit of risk. The Tarku Resources is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.50 in Tarku Resources on August 10, 2025 and sell it today you would earn a total of 0.50 from holding Tarku Resources or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citadel Income vs. Tarku Resources
Performance |
| Timeline |
| Citadel Income |
| Tarku Resources |
Citadel Income and Tarku Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citadel Income and Tarku Resources
The main advantage of trading using opposite Citadel Income and Tarku Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, Tarku Resources 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 Tarku Resources will offset losses from the drop in Tarku Resources' long position.| Citadel Income vs. Commerce Split Corp | Citadel Income vs. Energy Income | Citadel Income vs. Healthcare Special Opportunities |
| Tarku Resources vs. Labrador Iron Ore | Tarku Resources vs. Rogers Communications | Tarku Resources vs. Information Services | Tarku Resources vs. BluMetric Environmental |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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