Correlation Between Gladstone Investment and Citi Trends
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and Citi Trends 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 Gladstone Investment and Citi Trends into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Citi Trends, you can compare the effects of market volatilities on Gladstone Investment and Citi Trends 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 Gladstone Investment with a short position of Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Citi Trends.
Diversification Opportunities for Gladstone Investment and Citi Trends
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gladstone and Citi is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends and Gladstone Investment 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 Gladstone Investment are associated (or correlated) with Citi Trends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citi Trends has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and Citi Trends go up and down completely randomly.
Pair Corralation between Gladstone Investment and Citi Trends
Assuming the 90 days horizon Gladstone Investment is expected to generate 0.14 times more return on investment than Citi Trends. However, Gladstone Investment is 7.06 times less risky than Citi Trends. It trades about 0.1 of its potential returns per unit of risk. Citi Trends is currently generating about -0.02 per unit of risk. If you would invest 2,214 in Gladstone Investment on September 1, 2024 and sell it today you would earn a total of 386.00 from holding Gladstone Investment or generate 17.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 83.08% |
| Values | Daily Returns |
Gladstone Investment vs. Citi Trends
Performance |
| Timeline |
| Gladstone Investment |
| Citi Trends |
Gladstone Investment and Citi Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Citi Trends
The main advantage of trading using opposite Gladstone Investment and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, Citi Trends 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 Citi Trends will offset losses from the drop in Citi Trends' long position.| Gladstone Investment vs. Acco Brands | Gladstone Investment vs. Skillful Craftsman Education | Gladstone Investment vs. Agnico Eagle Mines | Gladstone Investment vs. AMREP |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| 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. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |