Correlation Between Citi Trends and 191216DC1
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By analyzing existing cross correlation between Citi Trends and COCA COLA CO, you can compare the effects of market volatilities on Citi Trends and 191216DC1 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 191216DC1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and 191216DC1.
Diversification Opportunities for Citi Trends and 191216DC1
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citi and 191216DC1 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and COCA COLA CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A CO 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 191216DC1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A CO has no effect on the direction of Citi Trends i.e., Citi Trends and 191216DC1 go up and down completely randomly.
Pair Corralation between Citi Trends and 191216DC1
Given the investment horizon of 90 days Citi Trends is expected to generate 2.04 times more return on investment than 191216DC1. However, Citi Trends is 2.04 times more volatile than COCA COLA CO. It trades about 0.05 of its potential returns per unit of risk. COCA COLA CO is currently generating about 0.05 per unit of risk. If you would invest 2,180 in Citi Trends on September 24, 2024 and sell it today you would earn a total of 343.00 from holding Citi Trends or generate 15.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 92.13% |
Values | Daily Returns |
Citi Trends vs. COCA COLA CO
Performance |
Timeline |
Citi Trends |
COCA A CO |
Citi Trends and 191216DC1 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citi Trends and 191216DC1
The main advantage of trading using opposite Citi Trends and 191216DC1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, 191216DC1 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 191216DC1 will offset losses from the drop in 191216DC1's long position.Citi Trends vs. Macys Inc | Citi Trends vs. Wayfair | Citi Trends vs. 1StdibsCom | Citi Trends vs. AutoNation |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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