Correlation Between Citi Trends and Veralto
Can any of the company-specific risk be diversified away by investing in both Citi Trends and Veralto 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 Veralto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and Veralto, you can compare the effects of market volatilities on Citi Trends and Veralto 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 Veralto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and Veralto.
Diversification Opportunities for Citi Trends and Veralto
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citi and Veralto is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and Veralto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veralto 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 Veralto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veralto has no effect on the direction of Citi Trends i.e., Citi Trends and Veralto go up and down completely randomly.
Pair Corralation between Citi Trends and Veralto
Given the investment horizon of 90 days Citi Trends is expected to under-perform the Veralto. In addition to that, Citi Trends is 2.27 times more volatile than Veralto. It trades about -0.05 of its total potential returns per unit of risk. Veralto is currently generating about 0.1 per unit of volatility. If you would invest 8,203 in Veralto on August 25, 2024 and sell it today you would earn a total of 2,438 from holding Veralto or generate 29.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citi Trends vs. Veralto
Performance |
| Timeline |
| Citi Trends |
| Veralto |
Citi Trends and Veralto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and Veralto
The main advantage of trading using opposite Citi Trends and Veralto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, Veralto 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 Veralto will offset losses from the drop in Veralto's long position.| Citi Trends vs. JJill Inc | Citi Trends vs. Zumiez Inc | Citi Trends vs. Tillys Inc | Citi Trends vs. Duluth Holdings |
| Veralto vs. Tandy Leather Factory | Veralto vs. Skechers USA | Veralto vs. Citi Trends | Veralto vs. Asure Software |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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