Correlation Between Citi Trends and JIADE LIMITED

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

By analyzing existing cross correlation between Citi Trends and JIADE LIMITED Common, you can compare the effects of market volatilities on Citi Trends and JIADE LIMITED 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 JIADE LIMITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and JIADE LIMITED.

Diversification Opportunities for Citi Trends and JIADE LIMITED

0.48

Correlation Coefficient

Citi Trends  JIADE LIMITED

Very weak diversification

The 3 months correlation between Citi and JIADE is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and JIADE LIMITED Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIADE LIMITED Common 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 JIADE LIMITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIADE LIMITED Common has no effect on the direction of Citi Trends i.e., Citi Trends and JIADE LIMITED go up and down completely randomly.

Pair Corralation between Citi Trends and JIADE LIMITED

Given the investment horizon of 90 days Citi Trends is expected to under-perform the JIADE LIMITED. But the stock apears to be less risky and, when comparing its historical volatility, Citi Trends is 2.4 times less risky than JIADE LIMITED. The stock trades about -0.05 of its potential returns per unit of risk. The JIADE LIMITED Common is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  73.00  in JIADE LIMITED Common on December 24, 2024 and sell it today you would lose (9.80) from holding JIADE LIMITED Common or give up 13.42% of portfolio value over 90 days.

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

Citi Trends  vs.  JIADE LIMITED Common

Citi Trends

Risk-Adjusted Performance

Very Weak

Over the last 90 days Citi Trends has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

JIADE LIMITED Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days JIADE LIMITED Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly unfluctuating basic indicators, JIADE LIMITED may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Citi Trends and JIADE LIMITED

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

The idea behind Citi Trends and JIADE LIMITED Common 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.