Correlation Between Citi Trends and WiMi Hologram
Can any of the company-specific risk be diversified away by investing in both Citi Trends and WiMi Hologram 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 WiMi Hologram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citi Trends and WiMi Hologram Cloud, you can compare the effects of market volatilities on Citi Trends and WiMi Hologram 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 WiMi Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citi Trends and WiMi Hologram.
Diversification Opportunities for Citi Trends and WiMi Hologram
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citi and WiMi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Citi Trends and WiMi Hologram Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WiMi Hologram Cloud 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 WiMi Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WiMi Hologram Cloud has no effect on the direction of Citi Trends i.e., Citi Trends and WiMi Hologram go up and down completely randomly.
Pair Corralation between Citi Trends and WiMi Hologram
Given the investment horizon of 90 days Citi Trends is expected to generate 1.09 times more return on investment than WiMi Hologram. However, Citi Trends is 1.09 times more volatile than WiMi Hologram Cloud. It trades about -0.03 of its potential returns per unit of risk. WiMi Hologram Cloud is currently generating about -0.15 per unit of risk. If you would invest 1,991 in Citi Trends on August 29, 2024 and sell it today you would lose (76.00) from holding Citi Trends or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citi Trends vs. WiMi Hologram Cloud
Performance |
| Timeline |
| Citi Trends |
| WiMi Hologram Cloud |
Citi Trends and WiMi Hologram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citi Trends and WiMi Hologram
The main advantage of trading using opposite Citi Trends and WiMi Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citi Trends position performs unexpectedly, WiMi Hologram 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 WiMi Hologram will offset losses from the drop in WiMi Hologram's long position.| Citi Trends vs. JJill Inc | Citi Trends vs. Zumiez Inc | Citi Trends vs. Tillys Inc | Citi Trends vs. Duluth Holdings |
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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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