Correlation Between Citi Trends and Phunware
Can any of the company-specific risk be diversified away by investing in both Citi Trends and Phunware 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 Phunware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and Phunware, you can compare the effects of market volatilities on Citi Trends and Phunware 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 Phunware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and Phunware.
Diversification Opportunities for Citi Trends and Phunware
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citi and Phunware is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware 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 Phunware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phunware has no effect on the direction of Citi Trends i.e., Citi Trends and Phunware go up and down completely randomly.
Pair Corralation between Citi Trends and Phunware
If you would invest 1,901 in Citi Trends on September 12, 2024 and sell it today you would earn a total of 598.00 from holding Citi Trends or generate 31.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Citi Trends vs. Phunware
Performance |
| Timeline |
| Citi Trends |
| Phunware |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citi Trends and Phunware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and Phunware
The main advantage of trading using opposite Citi Trends and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, Phunware 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 Phunware will offset losses from the drop in Phunware's long position.| Citi Trends vs. Foot Locker | Citi Trends vs. Lands End | Citi Trends vs. Duluth Holdings | Citi Trends vs. Destination XL Group |
| Phunware vs. Stepan Company | Phunware vs. Griffon | Phunware vs. NL Industries | Phunware vs. Cementos Pacasmayo SAA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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