Correlation Between 674599DX0 and Citi Trends

Can any of the company-specific risk be diversified away by investing in both 674599DX0 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 674599DX0 and Citi Trends into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OXY 75 01 NOV 96 and Citi Trends, you can compare the effects of market volatilities on 674599DX0 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 674599DX0 with a short position of Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of 674599DX0 and Citi Trends.

Diversification Opportunities for 674599DX0 and Citi Trends

-0.17

Correlation Coefficient

674599DX0  Citi Trends

Good diversification

The 3 months correlation between 674599DX0 and Citi is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding OXY 75 01 NOV 96 and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends and 674599DX0 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 OXY 75 01 NOV 96 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 674599DX0 i.e., 674599DX0 and Citi Trends go up and down completely randomly.

Pair Corralation between 674599DX0 and Citi Trends

Assuming the 90 days trading horizon OXY 75 01 NOV 96 is expected to under-perform the Citi Trends. But the bond apears to be less risky and, when comparing its historical volatility, OXY 75 01 NOV 96 is 1.26 times less risky than Citi Trends. The bond trades about -0.16 of its potential returns per unit of risk. The Citi Trends is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,680  in Citi Trends on September 15, 2024 and sell it today you would earn a total of  798.00  from holding Citi Trends or generate 47.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	43.75%
Values	Daily Returns

OXY 75 01 NOV 96  vs.  Citi Trends

OXY 75 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OXY 75 01 NOV 96 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for OXY 75 01 NOV 96 investors.

Citi Trends

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citi Trends are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Citi Trends displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 674599DX0 and Citi Trends

The main advantage of trading using opposite 674599DX0 and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 674599DX0 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.

The idea behind OXY 75 01 NOV 96 and Citi Trends 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.