Correlation Between Citi Trends and SEALSQ Corp

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

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

Diversification Opportunities for Citi Trends and SEALSQ Corp

0.0

Correlation Coefficient

Citi Trends  SEALSQ Corp

Pay attention - limited upside

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

Pair Corralation between Citi Trends and SEALSQ Corp

Given the investment horizon of 90 days Citi Trends is expected to generate 6219.26 times less return on investment than SEALSQ Corp. But when comparing it to its historical volatility, Citi Trends is 144.09 times less risky than SEALSQ Corp. It trades about 0.01 of its potential returns per unit of risk. SEALSQ Corp Ordinary is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest  0.00  in SEALSQ Corp Ordinary on September 24, 2024 and sell it today you would earn a total of  2,197  from holding SEALSQ Corp Ordinary or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.0%
Values	Daily Returns

Citi Trends  vs.  SEALSQ Corp Ordinary

Citi Trends

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citi Trends are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Citi Trends displayed solid returns over the last few months and may actually be approaching a breakup point.

SEALSQ Corp Ordinary

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SEALSQ Corp Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, SEALSQ Corp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Citi Trends and SEALSQ Corp

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

The idea behind Citi Trends and SEALSQ Corp Ordinary 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 .