Correlation Between Citizens Bancorp and Hawkins
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Hawkins 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 Hawkins 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 Hawkins, you can compare the effects of market volatilities on Citizens Bancorp and Hawkins 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 Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Hawkins.
Diversification Opportunities for Citizens Bancorp and Hawkins
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citizens and Hawkins is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins 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 Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Hawkins go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Hawkins
Given the investment horizon of 90 days Citizens Bancorp is expected to generate 1.38 times less return on investment than Hawkins. But when comparing it to its historical volatility, Citizens Bancorp Investment is 1.44 times less risky than Hawkins. It trades about 0.07 of its potential returns per unit of risk. Hawkins is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 12,196 in Hawkins on August 31, 2024 and sell it today you would earn a total of 1,143 from holding Hawkins or generate 9.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. Hawkins
Performance |
| Timeline |
| Citizens Bancorp Inv |
| Hawkins |
Citizens Bancorp and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Hawkins
The main advantage of trading using opposite Citizens Bancorp and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' 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 |
| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |