Correlation Between Live Ventures and Citi Trends
Can any of the company-specific risk be diversified away by investing in both Live Ventures 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 Live Ventures and Citi Trends into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and Citi Trends, you can compare the effects of market volatilities on Live Ventures 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 Live Ventures with a short position of Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and Citi Trends.
Diversification Opportunities for Live Ventures and Citi Trends
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Live and Citi is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends and Live Ventures 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 Live Ventures 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 Live Ventures i.e., Live Ventures and Citi Trends go up and down completely randomly.
Pair Corralation between Live Ventures and Citi Trends
Given the investment horizon of 90 days Live Ventures is expected to under-perform the Citi Trends. In addition to that, Live Ventures is 1.22 times more volatile than Citi Trends. It trades about -0.14 of its total potential returns per unit of risk. Citi Trends is currently generating about -0.01 per unit of volatility. If you would invest 2,281 in Citi Trends on September 3, 2024 and sell it today you would lose (286.00) from holding Citi Trends or give up 12.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Ventures vs. Citi Trends
Performance |
| Timeline |
| Live Ventures |
| Citi Trends |
Live Ventures and Citi Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Ventures and Citi Trends
The main advantage of trading using opposite Live Ventures and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures 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.| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Kingfisher plc | Live Ventures vs. Haverty Furniture Companies |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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