Correlation Between Liberty Resources and Citi Trends
Can any of the company-specific risk be diversified away by investing in both Liberty Resources 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 Liberty Resources and Citi Trends into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Resources Acquisition and Citi Trends, you can compare the effects of market volatilities on Liberty Resources 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 Liberty Resources with a short position of Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Resources and Citi Trends.
Diversification Opportunities for Liberty Resources and Citi Trends
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Liberty and Citi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Resources Acquisition and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends and Liberty Resources 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 Liberty Resources Acquisition 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 Liberty Resources i.e., Liberty Resources and Citi Trends go up and down completely randomly.
Pair Corralation between Liberty Resources and Citi Trends
If you would invest 2,465 in Citi Trends on November 28, 2024 and sell it today you would earn a total of 70.00 from holding Citi Trends or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Liberty Resources Acquisition vs. Citi Trends
Performance |
| Timeline |
| Liberty Resources |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Citi Trends |
Liberty Resources and Citi Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Resources and Citi Trends
The main advantage of trading using opposite Liberty Resources and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Resources 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.| Liberty Resources vs. Emerson Radio | Liberty Resources vs. McDonalds | Liberty Resources vs. Hasbro Inc | Liberty Resources vs. Senmiao Technology |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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