Correlation Between Citi Trends and AeroCentury Corp
Can any of the company-specific risk be diversified away by investing in both Citi Trends and AeroCentury Corp 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 AeroCentury Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and AeroCentury Corp, you can compare the effects of market volatilities on Citi Trends and AeroCentury Corp 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 AeroCentury Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and AeroCentury Corp.
Diversification Opportunities for Citi Trends and AeroCentury Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citi and AeroCentury is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and AeroCentury Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AeroCentury Corp 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 AeroCentury Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AeroCentury Corp has no effect on the direction of Citi Trends i.e., Citi Trends and AeroCentury Corp go up and down completely randomly.
Pair Corralation between Citi Trends and AeroCentury Corp
If you would invest 1,868 in Citi Trends on September 14, 2024 and sell it today you would earn a total of 573.00 from holding Citi Trends or generate 30.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citi Trends vs. AeroCentury Corp
Performance |
| Timeline |
| Citi Trends |
| AeroCentury Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citi Trends and AeroCentury Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and AeroCentury Corp
The main advantage of trading using opposite Citi Trends and AeroCentury Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, AeroCentury Corp 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 AeroCentury Corp will offset losses from the drop in AeroCentury Corp's long position.| Citi Trends vs. Capri Holdings | Citi Trends vs. Movado Group | Citi Trends vs. Tapestry | Citi Trends vs. Brilliant Earth Group |
| AeroCentury Corp vs. Citi Trends | AeroCentury Corp vs. High Performance Beverages | AeroCentury Corp vs. Vita Coco | AeroCentury Corp vs. Lululemon Athletica |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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