Correlation Between Citizens Bancorp and Analog Devices
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Analog Devices 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 Citizens Bancorp and Analog Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Bancorp Investment and Analog Devices, you can compare the effects of market volatilities on Citizens Bancorp and Analog Devices 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 Citizens Bancorp with a short position of Analog Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Analog Devices.
Diversification Opportunities for Citizens Bancorp and Analog Devices
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citizens and Analog is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and Analog Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Devices and Citizens 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 Citizens Bancorp Investment are associated (or correlated) with Analog Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Devices has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Analog Devices go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Analog Devices
Given the investment horizon of 90 days Citizens Bancorp Investment is expected to generate 0.83 times more return on investment than Analog Devices. However, Citizens Bancorp Investment is 1.21 times less risky than Analog Devices. It trades about 0.4 of its potential returns per unit of risk. Analog Devices is currently generating about -0.06 per unit of risk. If you would invest 2,200 in Citizens Bancorp Investment on September 3, 2024 and sell it today you would earn a total of 300.00 from holding Citizens Bancorp Investment or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. Analog Devices
Performance |
| Timeline |
| Citizens Bancorp Inv |
| Analog Devices |
Citizens Bancorp and Analog Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Analog Devices
The main advantage of trading using opposite Citizens Bancorp and Analog Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Analog Devices 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 Analog Devices will offset losses from the drop in Analog Devices' long position.| Citizens Bancorp vs. Greenville Federal Financial | Citizens Bancorp vs. First Ottawa Bancshares | Citizens Bancorp vs. Coastal Carolina Bancshares | Citizens Bancorp vs. First Bankers Trustshares |
| Analog Devices vs. Silicon Motion Technology | Analog Devices vs. ASE Industrial Holding | Analog Devices vs. SemiLEDS | Analog Devices vs. Advanced Micro Devices |
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.
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