Correlation Between Citi Trends and Tillys
Can any of the company-specific risk be diversified away by investing in both Citi Trends and Tillys 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 Tillys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and Tillys Inc, you can compare the effects of market volatilities on Citi Trends and Tillys 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 Tillys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and Tillys.
Diversification Opportunities for Citi Trends and Tillys
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citi and Tillys is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Tillys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tillys 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 Tillys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tillys Inc has no effect on the direction of Citi Trends i.e., Citi Trends and Tillys go up and down completely randomly.
Pair Corralation between Citi Trends and Tillys
Given the investment horizon of 90 days Citi Trends is expected to generate 1.02 times more return on investment than Tillys. However, Citi Trends is 1.02 times more volatile than Tillys Inc. It trades about -0.02 of its potential returns per unit of risk. Tillys Inc is currently generating about -0.05 per unit of risk. If you would invest 3,060 in Citi Trends on August 27, 2024 and sell it today you would lose (1,168) from holding Citi Trends or give up 38.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citi Trends vs. Tillys Inc
Performance |
| Timeline |
| Citi Trends |
| Tillys Inc |
Citi Trends and Tillys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and Tillys
The main advantage of trading using opposite Citi Trends and Tillys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, Tillys 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 Tillys will offset losses from the drop in Tillys' 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |