Correlation Between Citi Trends and Bowlin Travel
Can any of the company-specific risk be diversified away by investing in both Citi Trends and Bowlin Travel 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 Bowlin Travel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and Bowlin Travel Centers, you can compare the effects of market volatilities on Citi Trends and Bowlin Travel 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 Bowlin Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and Bowlin Travel.
Diversification Opportunities for Citi Trends and Bowlin Travel
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citi and Bowlin is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Bowlin Travel Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowlin Travel Centers 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 Bowlin Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowlin Travel Centers has no effect on the direction of Citi Trends i.e., Citi Trends and Bowlin Travel go up and down completely randomly.
Pair Corralation between Citi Trends and Bowlin Travel
Given the investment horizon of 90 days Citi Trends is expected to under-perform the Bowlin Travel. In addition to that, Citi Trends is 15.49 times more volatile than Bowlin Travel Centers. It trades about -0.01 of its total potential returns per unit of risk. Bowlin Travel Centers is currently generating about 0.22 per unit of volatility. If you would invest 396.00 in Bowlin Travel Centers on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Bowlin Travel Centers or generate 1.01% 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. Bowlin Travel Centers
Performance |
| Timeline |
| Citi Trends |
| Bowlin Travel Centers |
Citi Trends and Bowlin Travel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and Bowlin Travel
The main advantage of trading using opposite Citi Trends and Bowlin Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, Bowlin Travel 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 Bowlin Travel will offset losses from the drop in Bowlin Travel's long position.| Citi Trends vs. JJill Inc | Citi Trends vs. Zumiez Inc | Citi Trends vs. Tillys Inc | Citi Trends vs. Duluth Holdings |
| Bowlin Travel vs. Willamette Valley Vineyards | Bowlin Travel vs. Compania Cervecerias Unidas | Bowlin Travel vs. Teleflex Incorporated | Bowlin Travel vs. Emerson Radio |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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