Correlation Between Scilex Holding and Citi Trends
Can any of the company-specific risk be diversified away by investing in both Scilex Holding 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 Scilex Holding and Citi Trends into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scilex Holding and Citi Trends, you can compare the effects of market volatilities on Scilex Holding 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 Scilex Holding with a short position of Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scilex Holding and Citi Trends.
Diversification Opportunities for Scilex Holding and Citi Trends
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scilex and Citi is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Scilex Holding and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends and Scilex Holding 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 Scilex Holding 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 Scilex Holding i.e., Scilex Holding and Citi Trends go up and down completely randomly.
Pair Corralation between Scilex Holding and Citi Trends
Assuming the 90 days horizon Scilex Holding is expected to generate 7.3 times more return on investment than Citi Trends. However, Scilex Holding is 7.3 times more volatile than Citi Trends. It trades about 0.12 of its potential returns per unit of risk. Citi Trends is currently generating about 0.09 per unit of risk. If you would invest 29.00 in Scilex Holding on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Scilex Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Scilex Holding vs. Citi Trends
Performance |
| Timeline |
| Scilex Holding |
| Citi Trends |
Scilex Holding and Citi Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scilex Holding and Citi Trends
The main advantage of trading using opposite Scilex Holding and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scilex Holding 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.| Scilex Holding vs. National Beverage Corp | Scilex Holding vs. Juniata Valley Financial | Scilex Holding vs. BCB Bancorp | Scilex Holding vs. Western Union Co |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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