Correlation Between Citizens Bancorp and Cullman Bancorp
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Cullman 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 Cullman 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 Cullman Bancorp, you can compare the effects of market volatilities on Citizens Bancorp and Cullman 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 Cullman Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Cullman Bancorp.
Diversification Opportunities for Citizens Bancorp and Cullman Bancorp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citizens and Cullman is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and Cullman Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullman 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 Cullman Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullman Bancorp has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Cullman Bancorp go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Cullman Bancorp
If you would invest 2,400 in Citizens Bancorp Investment on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Citizens Bancorp Investment or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. Cullman Bancorp
Performance |
| Timeline |
| Citizens Bancorp Inv |
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citizens Bancorp and Cullman Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Cullman Bancorp
The main advantage of trading using opposite Citizens Bancorp and Cullman Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Cullman 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 Cullman Bancorp will offset losses from the drop in Cullman Bancorp'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 |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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