Correlation Between Citizens Bancorp and American Business
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and American Business 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 American Business 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 American Business Bk, you can compare the effects of market volatilities on Citizens Bancorp and American Business 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 American Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and American Business.
Diversification Opportunities for Citizens Bancorp and American Business
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citizens and American is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and American Business Bk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Business 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 American Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Business has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and American Business go up and down completely randomly.
Pair Corralation between Citizens Bancorp and American Business
Given the investment horizon of 90 days Citizens Bancorp Investment is expected to generate 3.03 times more return on investment than American Business. However, Citizens Bancorp is 3.03 times more volatile than American Business Bk. It trades about 0.37 of its potential returns per unit of risk. American Business Bk is currently generating about 0.07 per unit of risk. If you would invest 2,250 in Citizens Bancorp Investment on September 20, 2024 and sell it today you would earn a total of 305.00 from holding Citizens Bancorp Investment or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. American Business Bk
Performance |
| Timeline |
| Citizens Bancorp Inv |
| American Business |
Citizens Bancorp and American Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and American Business
The main advantage of trading using opposite Citizens Bancorp and American Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, American Business 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 American Business will offset losses from the drop in American Business' long position.| Citizens Bancorp vs. Morningstar Unconstrained Allocation | Citizens Bancorp vs. Bondbloxx ETF Trust | Citizens Bancorp vs. Spring Valley Acquisition | Citizens Bancorp vs. Bondbloxx ETF Trust |
| American Business vs. Private Bancorp of | American Business vs. Avidbank Holdings | American Business vs. Century Next Financial | American Business vs. American Riviera Bank |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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