Correlation Between Citi Trends and Chiba Bank
Can any of the company-specific risk be diversified away by investing in both Citi Trends and Chiba Bank 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 Citi Trends and Chiba Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and Chiba Bank Ltd, you can compare the effects of market volatilities on Citi Trends and Chiba Bank 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 Citi Trends with a short position of Chiba Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and Chiba Bank.
Diversification Opportunities for Citi Trends and Chiba Bank
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citi and Chiba is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Chiba Bank Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiba Bank and Citi Trends 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 Citi Trends are associated (or correlated) with Chiba Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiba Bank has no effect on the direction of Citi Trends i.e., Citi Trends and Chiba Bank go up and down completely randomly.
Pair Corralation between Citi Trends and Chiba Bank
If you would invest 1,927 in Citi Trends on October 5, 2024 and sell it today you would earn a total of 698.00 from holding Citi Trends or generate 36.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Citi Trends vs. Chiba Bank Ltd
Performance |
Timeline |
Citi Trends |
Chiba Bank |
Citi Trends and Chiba Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citi Trends and Chiba Bank
The main advantage of trading using opposite Citi Trends and Chiba Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, Chiba Bank 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 Chiba Bank will offset losses from the drop in Chiba Bank's long position.Citi Trends vs. JJill Inc | Citi Trends vs. Zumiez Inc | Citi Trends vs. Tillys Inc | Citi Trends vs. Duluth Holdings |
Chiba Bank vs. First Hawaiian | Chiba Bank vs. Central Pacific Financial | Chiba Bank vs. Territorial Bancorp | Chiba Bank vs. Comerica |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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