Correlation Between Citizens Bancorp and Freedom Holding
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Freedom Holding 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 Freedom Holding 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 Freedom Holding Corp, you can compare the effects of market volatilities on Citizens Bancorp and Freedom Holding 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 Freedom Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Freedom Holding.
Diversification Opportunities for Citizens Bancorp and Freedom Holding
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citizens and Freedom is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and Freedom Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Holding 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 Freedom Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Holding Corp has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Freedom Holding go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Freedom Holding
Given the investment horizon of 90 days Citizens Bancorp Investment is expected to under-perform the Freedom Holding. But the otc stock apears to be less risky and, when comparing its historical volatility, Citizens Bancorp Investment is 1.63 times less risky than Freedom Holding. The otc stock trades about -0.05 of its potential returns per unit of risk. The Freedom Holding Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,148 in Freedom Holding Corp on August 30, 2024 and sell it today you would earn a total of 5,695 from holding Freedom Holding Corp or generate 92.63% 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. Freedom Holding Corp
Performance |
| Timeline |
| Citizens Bancorp Inv |
| Freedom Holding Corp |
Citizens Bancorp and Freedom Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Freedom Holding
The main advantage of trading using opposite Citizens Bancorp and Freedom Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Freedom Holding 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 Freedom Holding will offset losses from the drop in Freedom Holding'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 |
| Freedom Holding vs. Nomura Holdings ADR | Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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