Correlation Between U Haul and Citi Trends
Can any of the company-specific risk be diversified away by investing in both U Haul 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 U Haul and Citi Trends into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Haul Holding and Citi Trends, you can compare the effects of market volatilities on U Haul 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 U Haul with a short position of Citi Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and Citi Trends.
Diversification Opportunities for U Haul and Citi Trends
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UHAL and Citi is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Citi Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citi Trends and U Haul 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 U Haul 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 U Haul i.e., U Haul and Citi Trends go up and down completely randomly.
Pair Corralation between U Haul and Citi Trends
Given the investment horizon of 90 days U Haul Holding is expected to generate 0.6 times more return on investment than Citi Trends. However, U Haul Holding is 1.67 times less risky than Citi Trends. It trades about 0.02 of its potential returns per unit of risk. Citi Trends is currently generating about 0.0 per unit of risk. If you would invest 6,559 in U Haul Holding on September 19, 2024 and sell it today you would earn a total of 679.00 from holding U Haul Holding or generate 10.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Haul Holding vs. Citi Trends
Performance |
| Timeline |
| U Haul Holding |
| Citi Trends |
U Haul and Citi Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and Citi Trends
The main advantage of trading using opposite U Haul and Citi Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul 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.| U Haul vs. Air Lease | U Haul vs. HE Equipment Services | U Haul vs. GATX Corporation | U Haul vs. Custom Truck One |
| Citi Trends vs. Capri Holdings | Citi Trends vs. Movado Group | Citi Trends vs. Tapestry | Citi Trends vs. Brilliant Earth Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |