Correlation Between Citadel Income and Pinetree Capital

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

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

Diversification Opportunities for Citadel Income and Pinetree Capital

-0.79

Correlation Coefficient

Citadel Income  Pinetree Capital

Pay attention - limited upside

The 3 months correlation between Citadel and Pinetree is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and Pinetree Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinetree Capital 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 Pinetree Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinetree Capital has no effect on the direction of Citadel Income i.e., Citadel Income and Pinetree Capital go up and down completely randomly.

Pair Corralation between Citadel Income and Pinetree Capital

Assuming the 90 days trading horizon Citadel Income is expected to generate 0.49 times more return on investment than Pinetree Capital. However, Citadel Income is 2.05 times less risky than Pinetree Capital. It trades about 0.11 of its potential returns per unit of risk. Pinetree Capital is currently generating about -0.15 per unit of risk. If you would invest  262.00  in Citadel Income on May 19, 2025 and sell it today you would earn a total of  26.00  from holding Citadel Income or generate 9.92% return on investment over 90 days.

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

Citadel Income  vs.  Pinetree Capital

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.

Pinetree Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days Pinetree Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Citadel Income and Pinetree Capital

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

The idea behind Citadel Income and Pinetree Capital 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.