Correlation Between Citi Trends and Goliath Film

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

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

Diversification Opportunities for Citi Trends and Goliath Film

-0.42

Correlation Coefficient

Citi Trends  Goliath Film

Very good diversification

The 3 months correlation between Citi and Goliath is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Goliath Film and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goliath Film 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 Goliath Film. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goliath Film has no effect on the direction of Citi Trends i.e., Citi Trends and Goliath Film go up and down completely randomly.

Pair Corralation between Citi Trends and Goliath Film

Given the investment horizon of 90 days Citi Trends is expected to generate 0.44 times more return on investment than Goliath Film. However, Citi Trends is 2.29 times less risky than Goliath Film. It trades about 0.19 of its potential returns per unit of risk. Goliath Film and is currently generating about 0.05 per unit of risk. If you would invest  1,806  in Citi Trends on October 1, 2024 and sell it today you would earn a total of  879.00  from holding Citi Trends or generate 48.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.92%
Values	Daily Returns

Citi Trends  vs.  Goliath Film and

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 unfluctuating basic indicators, Citi Trends displayed solid returns over the last few months and may actually be approaching a breakup point.

Goliath Film

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Goliath Film and are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile primary indicators, Goliath Film demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citi Trends and Goliath Film

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

The idea behind Citi Trends and Goliath Film and 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.