Correlation Between Citizens Bancorp and Tenaris SA
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Tenaris SA 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 Tenaris SA 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 Tenaris SA ADR, you can compare the effects of market volatilities on Citizens Bancorp and Tenaris SA 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 Tenaris SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Tenaris SA.
Diversification Opportunities for Citizens Bancorp and Tenaris SA
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citizens and Tenaris is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and Tenaris SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenaris SA ADR 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 Tenaris SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenaris SA ADR has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Tenaris SA go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Tenaris SA
Given the investment horizon of 90 days Citizens Bancorp Investment is expected to under-perform the Tenaris SA. But the otc stock apears to be less risky and, when comparing its historical volatility, Citizens Bancorp Investment is 1.09 times less risky than Tenaris SA. The otc stock trades about -0.04 of its potential returns per unit of risk. The Tenaris SA ADR is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,380 in Tenaris SA ADR on September 14, 2024 and sell it today you would earn a total of 483.00 from holding Tenaris SA ADR or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. Tenaris SA ADR
Performance |
| Timeline |
| Citizens Bancorp Inv |
| Tenaris SA ADR |
Citizens Bancorp and Tenaris SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Tenaris SA
The main advantage of trading using opposite Citizens Bancorp and Tenaris SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Tenaris SA 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 Tenaris SA will offset losses from the drop in Tenaris SA'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 |
| Tenaris SA vs. TechnipFMC PLC | Tenaris SA vs. Now Inc | Tenaris SA vs. ChampionX | Tenaris SA vs. Baker Hughes Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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