Correlation Between Citi Trends and Clean Seas
Can any of the company-specific risk be diversified away by investing in both Citi Trends and Clean Seas 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 Clean Seas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and Clean Seas Seafood, you can compare the effects of market volatilities on Citi Trends and Clean Seas 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 Clean Seas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and Clean Seas.
Diversification Opportunities for Citi Trends and Clean Seas
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citi and Clean is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Clean Seas Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Seas Seafood 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 Clean Seas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Seas Seafood has no effect on the direction of Citi Trends i.e., Citi Trends and Clean Seas go up and down completely randomly.
Pair Corralation between Citi Trends and Clean Seas
If you would invest 5.00 in Clean Seas Seafood on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Clean Seas Seafood or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citi Trends vs. Clean Seas Seafood
Performance |
| Timeline |
| Citi Trends |
| Clean Seas Seafood |
Citi Trends and Clean Seas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and Clean Seas
The main advantage of trading using opposite Citi Trends and Clean Seas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, Clean Seas 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 Clean Seas will offset losses from the drop in Clean Seas' long position.| Citi Trends vs. JJill Inc | Citi Trends vs. Zumiez Inc | Citi Trends vs. Tillys Inc | Citi Trends vs. Duluth Holdings |
| Clean Seas vs. ServiceNow | Clean Seas vs. Senmiao Technology | Clean Seas vs. Western Digital | Clean Seas vs. Keurig Dr Pepper |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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