Correlation Between Citi Trends and Broadstone Net
Can any of the company-specific risk be diversified away by investing in both Citi Trends and Broadstone Net 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 Broadstone Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and Broadstone Net Lease, you can compare the effects of market volatilities on Citi Trends and Broadstone Net 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 Broadstone Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and Broadstone Net.
Diversification Opportunities for Citi Trends and Broadstone Net
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citi and Broadstone is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Broadstone Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadstone Net Lease 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 Broadstone Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadstone Net Lease has no effect on the direction of Citi Trends i.e., Citi Trends and Broadstone Net go up and down completely randomly.
Pair Corralation between Citi Trends and Broadstone Net
Given the investment horizon of 90 days Citi Trends is expected to generate 4.35 times more return on investment than Broadstone Net. However, Citi Trends is 4.35 times more volatile than Broadstone Net Lease. It trades about 0.51 of its potential returns per unit of risk. Broadstone Net Lease is currently generating about -0.23 per unit of risk. If you would invest 1,633 in Citi Trends on September 19, 2024 and sell it today you would earn a total of 982.00 from holding Citi Trends or generate 60.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citi Trends vs. Broadstone Net Lease
Performance |
| Timeline |
| Citi Trends |
| Broadstone Net Lease |
Citi Trends and Broadstone Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and Broadstone Net
The main advantage of trading using opposite Citi Trends and Broadstone Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, Broadstone Net 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 Broadstone Net will offset losses from the drop in Broadstone Net's long position.| Citi Trends vs. Capri Holdings | Citi Trends vs. Movado Group | Citi Trends vs. Tapestry | Citi Trends vs. Brilliant Earth Group |
| Broadstone Net vs. Armada Hflr Pr | Broadstone Net vs. Brightspire Capital | Broadstone Net vs. Safehold | Broadstone Net vs. Essential Properties Realty |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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