Correlation Between Repligen and Citi Trends

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

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

Diversification Opportunities for Repligen and Citi Trends

-0.08

Correlation Coefficient

Repligen  Citi Trends

Good diversification

The 3 months correlation between Repligen and Citi is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends and Repligen 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 Repligen 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 Repligen i.e., Repligen and Citi Trends go up and down completely randomly.

Pair Corralation between Repligen and Citi Trends

Given the investment horizon of 90 days Repligen is expected to generate 6.14 times less return on investment than Citi Trends. In addition to that, Repligen is 1.08 times more volatile than Citi Trends. It trades about 0.04 of its total potential returns per unit of risk. Citi Trends is currently generating about 0.24 per unit of volatility. 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	Insignificant
Accuracy	98.44%
Values	Daily Returns

Repligen  vs.  Citi Trends

Repligen

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Repligen are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Repligen may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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.

Pair Trading with Repligen and Citi Trends

The main advantage of trading using opposite Repligen and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen 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 Repligen 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.