Correlation Between AstroNova and Citizens Community
Can any of the company-specific risk be diversified away by investing in both AstroNova and Citizens Community 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 AstroNova and Citizens Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AstroNova and Citizens Community Bancorp, you can compare the effects of market volatilities on AstroNova and Citizens Community 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 AstroNova with a short position of Citizens Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstroNova and Citizens Community.
Diversification Opportunities for AstroNova and Citizens Community
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AstroNova and Citizens is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding AstroNova and Citizens Community Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Community and AstroNova 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 AstroNova are associated (or correlated) with Citizens Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Community has no effect on the direction of AstroNova i.e., AstroNova and Citizens Community go up and down completely randomly.
Pair Corralation between AstroNova and Citizens Community
Given the investment horizon of 90 days AstroNova is expected to generate 5.76 times less return on investment than Citizens Community. In addition to that, AstroNova is 1.27 times more volatile than Citizens Community Bancorp. It trades about 0.02 of its total potential returns per unit of risk. Citizens Community Bancorp is currently generating about 0.12 per unit of volatility. If you would invest 1,045 in Citizens Community Bancorp on September 2, 2024 and sell it today you would earn a total of 576.00 from holding Citizens Community Bancorp or generate 55.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AstroNova vs. Citizens Community Bancorp
Performance |
| Timeline |
| AstroNova |
| Citizens Community |
AstroNova and Citizens Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstroNova and Citizens Community
The main advantage of trading using opposite AstroNova and Citizens Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstroNova position performs unexpectedly, Citizens Community 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 Citizens Community will offset losses from the drop in Citizens Community's long position.| AstroNova vs. Key Tronic | AstroNova vs. Identiv | AstroNova vs. Red Cat Holdings | AstroNova vs. TransAct Technologies Incorporated |
| Citizens Community vs. Home Federal Bancorp | Citizens Community vs. First Financial Northwest | Citizens Community vs. First Northwest Bancorp | Citizens Community vs. First Capital |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |