Correlation Between Citi Trends and Primoris Services
Can any of the company-specific risk be diversified away by investing in both Citi Trends and Primoris Services 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 Primoris Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and Primoris Services, you can compare the effects of market volatilities on Citi Trends and Primoris Services 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 Primoris Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and Primoris Services.
Diversification Opportunities for Citi Trends and Primoris Services
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citi and Primoris is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Primoris Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primoris Services 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 Primoris Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primoris Services has no effect on the direction of Citi Trends i.e., Citi Trends and Primoris Services go up and down completely randomly.
Pair Corralation between Citi Trends and Primoris Services
Given the investment horizon of 90 days Citi Trends is expected to generate 2.93 times less return on investment than Primoris Services. In addition to that, Citi Trends is 1.3 times more volatile than Primoris Services. It trades about 0.04 of its total potential returns per unit of risk. Primoris Services is currently generating about 0.14 per unit of volatility. If you would invest 2,924 in Primoris Services on September 4, 2024 and sell it today you would earn a total of 5,402 from holding Primoris Services or generate 184.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citi Trends vs. Primoris Services
Performance |
| Timeline |
| Citi Trends |
| Primoris Services |
Citi Trends and Primoris Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and Primoris Services
The main advantage of trading using opposite Citi Trends and Primoris Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, Primoris Services 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 Primoris Services will offset losses from the drop in Primoris Services' long position.| Citi Trends vs. JJill Inc | Citi Trends vs. Zumiez Inc | Citi Trends vs. Tillys Inc | Citi Trends vs. Duluth Holdings |
| Primoris Services vs. EMCOR Group | Primoris Services vs. MYR Group | Primoris Services vs. Topbuild Corp | Primoris Services vs. Api Group Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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