Correlation Between BranchOut Food and Citi Trends
Can any of the company-specific risk be diversified away by investing in both BranchOut Food 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 BranchOut Food and Citi Trends into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BranchOut Food Common and Citi Trends, you can compare the effects of market volatilities on BranchOut Food 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 BranchOut Food with a short position of Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of BranchOut Food and Citi Trends.
Diversification Opportunities for BranchOut Food and Citi Trends
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BranchOut and Citi is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding BranchOut Food Common and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends and BranchOut Food 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 BranchOut Food Common 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 BranchOut Food i.e., BranchOut Food and Citi Trends go up and down completely randomly.
Pair Corralation between BranchOut Food and Citi Trends
Considering the 90-day investment horizon BranchOut Food Common is expected to generate 1.19 times more return on investment than Citi Trends. However, BranchOut Food is 1.19 times more volatile than Citi Trends. It trades about 0.14 of its potential returns per unit of risk. Citi Trends is currently generating about -0.01 per unit of risk. If you would invest 169.00 in BranchOut Food Common on August 28, 2024 and sell it today you would earn a total of 18.00 from holding BranchOut Food Common or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BranchOut Food Common vs. Citi Trends
Performance |
| Timeline |
| BranchOut Food Common |
| Citi Trends |
BranchOut Food and Citi Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BranchOut Food and Citi Trends
The main advantage of trading using opposite BranchOut Food and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BranchOut Food 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.| BranchOut Food vs. Xunlei Ltd Adr | BranchOut Food vs. WPP PLC ADR | BranchOut Food vs. Bt Brands | BranchOut Food vs. Dennys Corp |
| Citi Trends vs. JJill Inc | Citi Trends vs. Zumiez Inc | Citi Trends vs. Tillys Inc | Citi Trends vs. Duluth Holdings |
Check out your portfolio center.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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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