Correlation Between Apollo Bancorp and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both Apollo Bancorp and Citizens Bancorp 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 Apollo Bancorp and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Bancorp and Citizens Bancorp Investment, you can compare the effects of market volatilities on Apollo Bancorp and Citizens Bancorp 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 Apollo Bancorp with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Bancorp and Citizens Bancorp.
Diversification Opportunities for Apollo Bancorp and Citizens Bancorp
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apollo and Citizens is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Bancorp and Citizens Bancorp Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Bancorp Inv and Apollo Bancorp 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 Apollo Bancorp are associated (or correlated) with Citizens Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Bancorp Inv has no effect on the direction of Apollo Bancorp i.e., Apollo Bancorp and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Apollo Bancorp and Citizens Bancorp
Given the investment horizon of 90 days Apollo Bancorp is expected to generate 1.27 times more return on investment than Citizens Bancorp. However, Apollo Bancorp is 1.27 times more volatile than Citizens Bancorp Investment. It trades about 0.01 of its potential returns per unit of risk. Citizens Bancorp Investment is currently generating about -0.05 per unit of risk. If you would invest 3,721 in Apollo Bancorp on August 29, 2024 and sell it today you would lose (21.00) from holding Apollo Bancorp or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 53.21% |
| Values | Daily Returns |
Apollo Bancorp vs. Citizens Bancorp Investment
Performance |
| Timeline |
| Apollo Bancorp |
| Citizens Bancorp Inv |
Apollo Bancorp and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Bancorp and Citizens Bancorp
The main advantage of trading using opposite Apollo Bancorp and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Bancorp position performs unexpectedly, Citizens Bancorp 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 Bancorp will offset losses from the drop in Citizens Bancorp's long position.| Apollo Bancorp vs. The Farmers Bank | Apollo Bancorp vs. Bank of Utica | Apollo Bancorp vs. Delhi Bank Corp | Apollo Bancorp vs. CCSB Financial Corp |
| Citizens Bancorp vs. Greenville Federal Financial | Citizens Bancorp vs. First Ottawa Bancshares | Citizens Bancorp vs. Coastal Carolina Bancshares | Citizens Bancorp vs. First Bankers Trustshares |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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