Correlation Between Citi Trends and 606822CF9

Can any of the company-specific risk be diversified away by investing in both Citi Trends and 606822CF9 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 606822CF9 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citi Trends and MUFG 3837 17 APR 26, you can compare the effects of market volatilities on Citi Trends and 606822CF9 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 606822CF9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and 606822CF9.

Diversification Opportunities for Citi Trends and 606822CF9

0.33

Correlation Coefficient

Citi Trends  606822CF9

Weak diversification

The 3 months correlation between Citi and 606822CF9 is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and MUFG 3837 17 APR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUFG 3837 17 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 606822CF9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUFG 3837 17 has no effect on the direction of Citi Trends i.e., Citi Trends and 606822CF9 go up and down completely randomly.

Pair Corralation between Citi Trends and 606822CF9

Given the investment horizon of 90 days Citi Trends is expected to generate 15.22 times more return on investment than 606822CF9. However, Citi Trends is 15.22 times more volatile than MUFG 3837 17 APR 26. It trades about 0.19 of its potential returns per unit of risk. MUFG 3837 17 APR 26 is currently generating about -0.09 per unit of risk. If you would invest  1,680  in Citi Trends on September 14, 2024 and sell it today you would earn a total of  802.00  from holding Citi Trends or generate 47.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	60.94%
Values	Daily Returns

Citi Trends  vs.  MUFG 3837 17 APR 26

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.

MUFG 3837 17

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MUFG 3837 17 APR 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 606822CF9 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citi Trends and 606822CF9

The main advantage of trading using opposite Citi Trends and 606822CF9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, 606822CF9 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 606822CF9 will offset losses from the drop in 606822CF9's long position.

The idea behind Citi Trends and MUFG 3837 17 APR 26 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.