Correlation Between Concentra Group and Citi Trends
Can any of the company-specific risk be diversified away by investing in both Concentra Group 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 Concentra Group and Citi Trends into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concentra Group Holdings and Citi Trends, you can compare the effects of market volatilities on Concentra Group 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 Concentra Group with a short position of Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentra Group and Citi Trends.
Diversification Opportunities for Concentra Group and Citi Trends
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Concentra and Citi is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Concentra Group Holdings and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends and Concentra Group 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 Concentra Group Holdings 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 Concentra Group i.e., Concentra Group and Citi Trends go up and down completely randomly.
Pair Corralation between Concentra Group and Citi Trends
Considering the 90-day investment horizon Concentra Group Holdings is expected to under-perform the Citi Trends. But the stock apears to be less risky and, when comparing its historical volatility, Concentra Group Holdings is 1.4 times less risky than Citi Trends. The stock trades about 0.0 of its potential returns per unit of risk. The Citi Trends is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,638 in Citi Trends on August 31, 2024 and sell it today you would earn a total of 357.00 from holding Citi Trends or generate 21.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 24.33% |
| Values | Daily Returns |
Concentra Group Holdings vs. Citi Trends
Performance |
| Timeline |
| Concentra Group Holdings |
| Citi Trends |
Concentra Group and Citi Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concentra Group and Citi Trends
The main advantage of trading using opposite Concentra Group and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentra Group 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.| Concentra Group vs. Acadia Healthcare | Concentra Group vs. Select Medical Holdings | Concentra Group vs. Universal Health Services | Concentra Group vs. Prestige Brand Holdings |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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