Correlation Between Citi Trends and JJill
Can any of the company-specific risk be diversified away by investing in both Citi Trends and JJill 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 JJill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and JJill Inc, you can compare the effects of market volatilities on Citi Trends and JJill 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 JJill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and JJill.
Diversification Opportunities for Citi Trends and JJill
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citi and JJill is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and JJill Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJill Inc 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 JJill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJill Inc has no effect on the direction of Citi Trends i.e., Citi Trends and JJill go up and down completely randomly.
Pair Corralation between Citi Trends and JJill
Given the investment horizon of 90 days Citi Trends is expected to under-perform the JJill. In addition to that, Citi Trends is 1.01 times more volatile than JJill Inc. It trades about -0.02 of its total potential returns per unit of risk. JJill Inc is currently generating about 0.02 per unit of volatility. If you would invest 2,357 in JJill Inc on August 27, 2024 and sell it today you would earn a total of 273.00 from holding JJill Inc or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citi Trends vs. JJill Inc
Performance |
| Timeline |
| Citi Trends |
| JJill Inc |
Citi Trends and JJill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and JJill
The main advantage of trading using opposite Citi Trends and JJill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, JJill 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 JJill will offset losses from the drop in JJill's long position.| Citi Trends vs. JJill Inc | Citi Trends vs. Zumiez Inc | Citi Trends vs. Tillys Inc | Citi Trends vs. Duluth Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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