Correlation Between TTM Technologies and Citi Trends
Can any of the company-specific risk be diversified away by investing in both TTM Technologies and Citi Trends 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 TTM Technologies and Citi Trends into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTM Technologies and Citi Trends, you can compare the effects of market volatilities on TTM Technologies and Citi Trends 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 TTM Technologies with a short position of Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTM Technologies and Citi Trends.
Diversification Opportunities for TTM Technologies and Citi Trends
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TTM and Citi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding TTM Technologies and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends and TTM Technologies 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 TTM Technologies are associated (or correlated) with Citi Trends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citi Trends has no effect on the direction of TTM Technologies i.e., TTM Technologies and Citi Trends go up and down completely randomly.
Pair Corralation between TTM Technologies and Citi Trends
Given the investment horizon of 90 days TTM Technologies is expected to generate 0.64 times more return on investment than Citi Trends. However, TTM Technologies is 1.57 times less risky than Citi Trends. It trades about -0.07 of its potential returns per unit of risk. Citi Trends is currently generating about -0.08 per unit of risk. If you would invest 2,564 in TTM Technologies on December 25, 2024 and sell it today you would lose (275.00) from holding TTM Technologies or give up 10.73% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
TTM Technologies vs. Citi Trends
Performance |
Timeline |
TTM Technologies |
Citi Trends |
TTM Technologies and Citi Trends Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TTM Technologies and Citi Trends
The main advantage of trading using opposite TTM Technologies and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTM Technologies position performs unexpectedly, Citi Trends 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 Citi Trends will offset losses from the drop in Citi Trends' long position.TTM Technologies vs. Sanmina | TTM Technologies vs. Benchmark Electronics | TTM Technologies vs. Methode Electronics | TTM Technologies vs. OSI Systems |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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