Correlation Between Citizens Bancorp and CCFNB Bancorp
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and CCFNB 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 Citizens Bancorp and CCFNB Bancorp 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 CCFNB Bancorp, you can compare the effects of market volatilities on Citizens Bancorp and CCFNB 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 Citizens Bancorp with a short position of CCFNB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and CCFNB Bancorp.
Diversification Opportunities for Citizens Bancorp and CCFNB Bancorp
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citizens and CCFNB is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp 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 CCFNB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCFNB Bancorp has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and CCFNB Bancorp go up and down completely randomly.
Pair Corralation between Citizens Bancorp and CCFNB Bancorp
Given the investment horizon of 90 days Citizens Bancorp Investment is expected to under-perform the CCFNB Bancorp. But the otc stock apears to be less risky and, when comparing its historical volatility, Citizens Bancorp Investment is 2.94 times less risky than CCFNB Bancorp. The otc stock trades about -0.05 of its potential returns per unit of risk. The CCFNB Bancorp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 5,098 in CCFNB Bancorp on August 26, 2024 and sell it today you would lose (1,438) from holding CCFNB Bancorp or give up 28.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.71% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. CCFNB Bancorp
Performance |
| Timeline |
| Citizens Bancorp Inv |
| CCFNB Bancorp |
Citizens Bancorp and CCFNB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and CCFNB Bancorp
The main advantage of trading using opposite Citizens Bancorp and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, CCFNB 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 CCFNB Bancorp will offset losses from the drop in CCFNB Bancorp's long position.| Citizens Bancorp vs. Standard Bank Group | Citizens Bancorp vs. PSB Holdings | Citizens Bancorp vs. United Overseas Bank | Citizens Bancorp vs. Turkiye Garanti Bankasi |
| CCFNB Bancorp vs. Susquehanna Community Financial | CCFNB Bancorp vs. Mifflinburg Bancorp | CCFNB Bancorp vs. Woodlands Financial Services | CCFNB Bancorp vs. Penns Woods Bancorp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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