Correlation Between Citi Trends and Concrete Pumping

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

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

Diversification Opportunities for Citi Trends and Concrete Pumping

-0.72

Correlation Coefficient

Citi Trends  Concrete Pumping

Pay attention - limited upside

The 3 months correlation between Citi and Concrete is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings 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 Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Citi Trends i.e., Citi Trends and Concrete Pumping go up and down completely randomly.

Pair Corralation between Citi Trends and Concrete Pumping

If you would invest  1,390  in Citi Trends on September 4, 2024 and sell it today you would earn a total of  686.00  from holding Citi Trends or generate 49.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Citi Trends  vs.  Concrete Pumping Holdings

Citi Trends

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citi Trends are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Citi Trends displayed solid returns over the last few months and may actually be approaching a breakup point.

Concrete Pumping Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Concrete Pumping Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Concrete Pumping 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 Concrete Pumping

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

The idea behind Citi Trends and Concrete Pumping Holdings 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 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.