Correlation Between Citizens Bancorp and OceanFirst Financial
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and OceanFirst Financial 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 OceanFirst Financial 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 OceanFirst Financial Corp, you can compare the effects of market volatilities on Citizens Bancorp and OceanFirst Financial 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 OceanFirst Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and OceanFirst Financial.
Diversification Opportunities for Citizens Bancorp and OceanFirst Financial
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citizens and OceanFirst is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and OceanFirst Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OceanFirst Financial 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 OceanFirst Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OceanFirst Financial Corp has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and OceanFirst Financial go up and down completely randomly.
Pair Corralation between Citizens Bancorp and OceanFirst Financial
Given the investment horizon of 90 days Citizens Bancorp Investment is expected to under-perform the OceanFirst Financial. But the otc stock apears to be less risky and, when comparing its historical volatility, Citizens Bancorp Investment is 1.39 times less risky than OceanFirst Financial. The otc stock trades about -0.05 of its potential returns per unit of risk. The OceanFirst Financial Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,167 in OceanFirst Financial Corp on August 26, 2024 and sell it today you would earn a total of 353.00 from holding OceanFirst Financial Corp or generate 16.29% 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. OceanFirst Financial Corp
Performance |
| Timeline |
| Citizens Bancorp Inv |
| OceanFirst Financial Corp |
Citizens Bancorp and OceanFirst Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and OceanFirst Financial
The main advantage of trading using opposite Citizens Bancorp and OceanFirst Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, OceanFirst Financial 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 OceanFirst Financial will offset losses from the drop in OceanFirst Financial'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 |
| OceanFirst Financial vs. Capital One Financial | OceanFirst Financial vs. Capital One Financial | OceanFirst Financial vs. Bank of America | OceanFirst Financial vs. KeyCorp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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