Correlation Between Fundamental Income and Citi Trends
Can any of the company-specific risk be diversified away by investing in both Fundamental Income 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 Fundamental Income and Citi Trends into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundamental Income Net and Citi Trends, you can compare the effects of market volatilities on Fundamental Income 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 Fundamental Income with a short position of Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Income and Citi Trends.
Diversification Opportunities for Fundamental Income and Citi Trends
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fundamental and Citi is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Income Net and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends and Fundamental Income 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 Fundamental Income Net 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 Fundamental Income i.e., Fundamental Income and Citi Trends go up and down completely randomly.
Pair Corralation between Fundamental Income and Citi Trends
Given the investment horizon of 90 days Fundamental Income Net is expected to under-perform the Citi Trends. But the etf apears to be less risky and, when comparing its historical volatility, Fundamental Income Net is 3.32 times less risky than Citi Trends. The etf trades about -0.15 of its potential returns per unit of risk. The Citi Trends is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,991 in Citi Trends on October 26, 2024 and sell it today you would earn a total of 695.00 from holding Citi Trends or generate 34.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundamental Income Net vs. Citi Trends
Performance |
| Timeline |
| Fundamental Income Net |
| Citi Trends |
Fundamental Income and Citi Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundamental Income and Citi Trends
The main advantage of trading using opposite Fundamental Income and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Income 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.| Fundamental Income vs. Innovid Corp | Fundamental Income vs. First Trust Flexible | Fundamental Income vs. Silicon Laboratories | Fundamental Income vs. XORTX Therapeutics |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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