Correlation Between Citi Trends and Hibbett Sports
Can any of the company-specific risk be diversified away by investing in both Citi Trends and Hibbett Sports 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 Hibbett Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and Hibbett Sports, you can compare the effects of market volatilities on Citi Trends and Hibbett Sports 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 Hibbett Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and Hibbett Sports.
Diversification Opportunities for Citi Trends and Hibbett Sports
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citi and Hibbett is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Hibbett Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hibbett Sports 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 Hibbett Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hibbett Sports has no effect on the direction of Citi Trends i.e., Citi Trends and Hibbett Sports go up and down completely randomly.
Pair Corralation between Citi Trends and Hibbett Sports
If you would invest 2,670 in Citi Trends on November 18, 2024 and sell it today you would earn a total of 149.00 from holding Citi Trends or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citi Trends vs. Hibbett Sports
Performance |
| Timeline |
| Citi Trends |
| Hibbett Sports |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citi Trends and Hibbett Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and Hibbett Sports
The main advantage of trading using opposite Citi Trends and Hibbett Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, Hibbett Sports 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 Hibbett Sports will offset losses from the drop in Hibbett Sports' long position.| Citi Trends vs. JJill Inc | Citi Trends vs. Zumiez Inc | Citi Trends vs. Tillys Inc | Citi Trends vs. Duluth Holdings |
| Hibbett Sports vs. Big 5 Sporting | Hibbett Sports vs. Genesco | Hibbett Sports vs. Shoe Carnival | Hibbett Sports vs. MarineMax |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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