Correlation Between Citizens Bancorp and Chemung Financial
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Chemung Financial 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 Chemung Financial 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 Chemung Financial Corp, you can compare the effects of market volatilities on Citizens Bancorp and Chemung Financial 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 Chemung Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Chemung Financial.
Diversification Opportunities for Citizens Bancorp and Chemung Financial
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citizens and Chemung is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and Chemung Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemung Financial Corp 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 Chemung Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemung Financial Corp has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Chemung Financial go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Chemung Financial
Given the investment horizon of 90 days Citizens Bancorp is expected to generate 9.12 times less return on investment than Chemung Financial. But when comparing it to its historical volatility, Citizens Bancorp Investment is 1.63 times less risky than Chemung Financial. It trades about 0.03 of its potential returns per unit of risk. Chemung Financial Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 4,672 in Chemung Financial Corp on November 27, 2024 and sell it today you would earn a total of 436.00 from holding Chemung Financial Corp or generate 9.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. Chemung Financial Corp
Performance |
| Timeline |
| Citizens Bancorp Inv |
| Chemung Financial Corp |
Citizens Bancorp and Chemung Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Chemung Financial
The main advantage of trading using opposite Citizens Bancorp and Chemung Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Chemung Financial 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 Chemung Financial will offset losses from the drop in Chemung Financial's 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 |
| Chemung Financial vs. Finward Bancorp | Chemung Financial vs. Community West Bancshares | Chemung Financial vs. First Financial Northwest | Chemung Financial vs. Oak Valley 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| 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 | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |