Correlation Between Citizens Bancorp and First Bancshares,
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and First Bancshares, 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 First Bancshares, 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 The First Bancshares,, you can compare the effects of market volatilities on Citizens Bancorp and First Bancshares, 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 First Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and First Bancshares,.
Diversification Opportunities for Citizens Bancorp and First Bancshares,
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citizens and First is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and The First Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bancshares, 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 First Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bancshares, has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and First Bancshares, go up and down completely randomly.
Pair Corralation between Citizens Bancorp and First Bancshares,
Given the investment horizon of 90 days Citizens Bancorp Investment is expected to under-perform the First Bancshares,. But the otc stock apears to be less risky and, when comparing its historical volatility, Citizens Bancorp Investment is 1.43 times less risky than First Bancshares,. The otc stock trades about -0.05 of its potential returns per unit of risk. The The First Bancshares, is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,122 in The First Bancshares, on August 30, 2024 and sell it today you would earn a total of 621.00 from holding The First Bancshares, or generate 19.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. The First Bancshares,
Performance |
| Timeline |
| Citizens Bancorp Inv |
| First Bancshares, |
Citizens Bancorp and First Bancshares, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and First Bancshares,
The main advantage of trading using opposite Citizens Bancorp and First Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, First Bancshares, 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 First Bancshares, will offset losses from the drop in First Bancshares,'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 |
| First Bancshares, vs. First Northwest Bancorp | First Bancshares, vs. Community West Bancshares | First Bancshares, vs. First Financial Northwest | First Bancshares, vs. Great Southern 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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