Correlation Between Citizens Bancorp and Vodka Brands
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Vodka Brands 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 Vodka Brands 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 Vodka Brands Corp, you can compare the effects of market volatilities on Citizens Bancorp and Vodka Brands 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 Vodka Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Vodka Brands.
Diversification Opportunities for Citizens Bancorp and Vodka Brands
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citizens and Vodka is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and Vodka Brands Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vodka Brands 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 Vodka Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vodka Brands Corp has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Vodka Brands go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Vodka Brands
Given the investment horizon of 90 days Citizens Bancorp Investment is expected to under-perform the Vodka Brands. But the otc stock apears to be less risky and, when comparing its historical volatility, Citizens Bancorp Investment is 5.78 times less risky than Vodka Brands. The otc stock trades about -0.05 of its potential returns per unit of risk. The Vodka Brands Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 177.00 in Vodka Brands Corp on September 14, 2024 and sell it today you would lose (65.00) from holding Vodka Brands Corp or give up 36.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. Vodka Brands Corp
Performance |
| Timeline |
| Citizens Bancorp Inv |
| Vodka Brands Corp |
Citizens Bancorp and Vodka Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Vodka Brands
The main advantage of trading using opposite Citizens Bancorp and Vodka Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Vodka Brands 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 Vodka Brands will offset losses from the drop in Vodka Brands' 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 |
| Vodka Brands vs. Brown Forman | Vodka Brands vs. Brown Forman | Vodka Brands vs. Eastside Distilling | Vodka Brands vs. Diageo PLC ADR |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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