Correlation Between Citadel Income and Open Text

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

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

Diversification Opportunities for Citadel Income and Open Text

0.62

Correlation Coefficient

Citadel Income  Open Text

Poor diversification

The 3 months correlation between Citadel and Open is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and Open Text Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Open Text Corp 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 Open Text. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Open Text Corp has no effect on the direction of Citadel Income i.e., Citadel Income and Open Text go up and down completely randomly.

Pair Corralation between Citadel Income and Open Text

Assuming the 90 days trading horizon Citadel Income is expected to generate 1.16 times more return on investment than Open Text. However, Citadel Income is 1.16 times more volatile than Open Text Corp. It trades about 0.06 of its potential returns per unit of risk. Open Text Corp is currently generating about 0.07 per unit of risk. If you would invest  267.00  in Citadel Income on May 7, 2025 and sell it today you would earn a total of  16.00  from holding Citadel Income or generate 5.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Citadel Income  vs.  Open Text Corp

Citadel Income

Risk-Adjusted Performance

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 September 2025.

Open Text Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Open Text Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Open Text may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Citadel Income and Open Text

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

The idea behind Citadel Income and Open Text Corp 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.