Correlation Between Citadel Income and GOLDMAN SACHS

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

By analyzing existing cross correlation between Citadel Income and GOLDMAN SACHS CDR, you can compare the effects of market volatilities on Citadel Income and GOLDMAN SACHS 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 GOLDMAN SACHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citadel Income and GOLDMAN SACHS.

Diversification Opportunities for Citadel Income and GOLDMAN SACHS

0.89

Correlation Coefficient

Citadel Income  GOLDMAN SACHS

Very poor diversification

The 3 months correlation between Citadel and GOLDMAN is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and GOLDMAN SACHS CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLDMAN SACHS CDR 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 GOLDMAN SACHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLDMAN SACHS CDR has no effect on the direction of Citadel Income i.e., Citadel Income and GOLDMAN SACHS go up and down completely randomly.

Pair Corralation between Citadel Income and GOLDMAN SACHS

Assuming the 90 days trading horizon Citadel Income is expected to generate 1.88 times less return on investment than GOLDMAN SACHS. In addition to that, Citadel Income is 1.13 times more volatile than GOLDMAN SACHS CDR. It trades about 0.11 of its total potential returns per unit of risk. GOLDMAN SACHS CDR is currently generating about 0.22 per unit of volatility. If you would invest  2,966  in GOLDMAN SACHS CDR on May 20, 2025 and sell it today you would earn a total of  606.00  from holding GOLDMAN SACHS CDR or generate 20.43% return on investment over 90 days.

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

Citadel Income  vs.  GOLDMAN SACHS CDR

Citadel Income

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citadel Income are ranked lower than 8 (%) 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 September 2025.

GOLDMAN SACHS CDR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GOLDMAN SACHS CDR are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, GOLDMAN SACHS displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citadel Income and GOLDMAN SACHS

The main advantage of trading using opposite Citadel Income and GOLDMAN SACHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citadel Income position performs unexpectedly, GOLDMAN SACHS 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 GOLDMAN SACHS will offset losses from the drop in GOLDMAN SACHS's long position.

The idea behind Citadel Income and GOLDMAN SACHS CDR 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.