Correlation Between Citadel Income and Theratechnologies

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

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

Diversification Opportunities for Citadel Income and Theratechnologies

0.0

Correlation Coefficient

Citadel Income  Theratechnologies

Pay attention - limited upside

The 3 months correlation between Citadel and Theratechnologies is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citadel Income and Theratechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theratechnologies 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 Theratechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theratechnologies has no effect on the direction of Citadel Income i.e., Citadel Income and Theratechnologies go up and down completely randomly.

Pair Corralation between Citadel Income and Theratechnologies

If you would invest  381.00  in Theratechnologies on May 7, 2025 and sell it today you would earn a total of  56.00  from holding Theratechnologies or generate 14.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Citadel Income  vs.  Theratechnologies

Citadel Income

Risk-Adjusted Performance

Soft

Over the last 90 days Citadel Income has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong technical and fundamental indicators, Citadel Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Theratechnologies

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Theratechnologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Theratechnologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citadel Income and Theratechnologies

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

The idea behind Citadel Income and Theratechnologies 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.