Correlation Between Citizens Bancorp and First Ship
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and First Ship 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 Ship 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 First Ship Lease, you can compare the effects of market volatilities on Citizens Bancorp and First Ship 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 Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and First Ship.
Diversification Opportunities for Citizens Bancorp and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citizens and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease 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 Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and First Ship go up and down completely randomly.
Pair Corralation between Citizens Bancorp and First Ship
Given the investment horizon of 90 days Citizens Bancorp Investment is expected to under-perform the First Ship. But the otc stock apears to be less risky and, when comparing its historical volatility, Citizens Bancorp Investment is 1.84 times less risky than First Ship. The otc stock trades about -0.05 of its potential returns per unit of risk. The First Ship Lease is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2.50 in First Ship Lease on September 2, 2024 and sell it today you would earn a total of 1.50 from holding First Ship Lease or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. First Ship Lease
Performance |
| Timeline |
| Citizens Bancorp Inv |
| First Ship Lease |
Citizens Bancorp and First Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and First Ship
The main advantage of trading using opposite Citizens Bancorp and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, First Ship 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 Ship will offset losses from the drop in First Ship'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 Ship vs. Monster Beverage Corp | First Ship vs. SNDL Inc | First Ship vs. Hudson Pacific Properties | First Ship vs. Mativ Holdings |
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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