Correlation Between Citadel Income and Pet Valu

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

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

Diversification Opportunities for Citadel Income and Pet Valu

0.78

Correlation Coefficient

Citadel Income  Pet Valu

Poor diversification

The 3 months correlation between Citadel and Pet is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and Pet Valu Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pet Valu Holdings 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 Pet Valu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pet Valu Holdings has no effect on the direction of Citadel Income i.e., Citadel Income and Pet Valu go up and down completely randomly.

Pair Corralation between Citadel Income and Pet Valu

Assuming the 90 days trading horizon Citadel Income is expected to generate 1.99 times less return on investment than Pet Valu. In addition to that, Citadel Income is 1.0 times more volatile than Pet Valu Holdings. It trades about 0.14 of its total potential returns per unit of risk. Pet Valu Holdings is currently generating about 0.28 per unit of volatility. If you would invest  2,867  in Pet Valu Holdings on May 14, 2025 and sell it today you would earn a total of  838.00  from holding Pet Valu Holdings or generate 29.23% return on investment over 90 days.

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

Citadel Income  vs.  Pet Valu Holdings

Citadel Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citadel Income are ranked lower than 11 (%) 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.

Pet Valu Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pet Valu Holdings are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Pet Valu displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citadel Income and Pet Valu

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

The idea behind Citadel Income and Pet Valu Holdings 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .