Correlation Between Citizens Bancorp and Main Street
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Main Street 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 Main Street 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 Main Street Financial, you can compare the effects of market volatilities on Citizens Bancorp and Main Street 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 Main Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Main Street.
Diversification Opportunities for Citizens Bancorp and Main Street
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citizens and Main is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and Main Street Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main Street Financial 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 Main Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main Street Financial has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Main Street go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Main Street
Given the investment horizon of 90 days Citizens Bancorp Investment is expected to under-perform the Main Street. But the otc stock apears to be less risky and, when comparing its historical volatility, Citizens Bancorp Investment is 1.72 times less risky than Main Street. The otc stock trades about -0.05 of its potential returns per unit of risk. The Main Street Financial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,540 in Main Street Financial on August 26, 2024 and sell it today you would lose (120.00) from holding Main Street Financial or give up 7.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. Main Street Financial
Performance |
| Timeline |
| Citizens Bancorp Inv |
| Main Street Financial |
Citizens Bancorp and Main Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Main Street
The main advantage of trading using opposite Citizens Bancorp and Main Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Main Street 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 Main Street will offset losses from the drop in Main Street's long position.| Citizens Bancorp vs. Standard Bank Group | Citizens Bancorp vs. PSB Holdings | Citizens Bancorp vs. United Overseas Bank | Citizens Bancorp vs. Turkiye Garanti Bankasi |
| Main Street vs. CCFNB Bancorp | Main Street vs. Burke Herbert Financial | Main Street vs. First IC | Main Street vs. Enterprise Financial Services |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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