Correlation Between Citizens Bancorp and Noble Plc
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Noble Plc 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 Noble Plc 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 Noble plc, you can compare the effects of market volatilities on Citizens Bancorp and Noble Plc 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 Noble Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Noble Plc.
Diversification Opportunities for Citizens Bancorp and Noble Plc
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citizens and Noble is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and Noble plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noble plc 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 Noble Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noble plc has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Noble Plc go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Noble Plc
Given the investment horizon of 90 days Citizens Bancorp Investment is expected to generate 0.73 times more return on investment than Noble Plc. However, Citizens Bancorp Investment is 1.37 times less risky than Noble Plc. It trades about -0.04 of its potential returns per unit of risk. Noble plc is currently generating about -0.06 per unit of risk. If you would invest 3,067 in Citizens Bancorp Investment on September 14, 2024 and sell it today you would lose (512.00) from holding Citizens Bancorp Investment or give up 16.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. Noble plc
Performance |
| Timeline |
| Citizens Bancorp Inv |
| Noble plc |
Citizens Bancorp and Noble Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Noble Plc
The main advantage of trading using opposite Citizens Bancorp and Noble Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Noble Plc 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 Noble Plc will offset losses from the drop in Noble Plc'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 |
| Noble Plc vs. Seadrill Limited | Noble Plc vs. Borr Drilling | Noble Plc vs. Patterson UTI Energy | Noble Plc vs. Transocean |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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