Correlation Between Citizens Bancorp and Vestis
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Vestis 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 Vestis 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 Vestis, you can compare the effects of market volatilities on Citizens Bancorp and Vestis 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 Vestis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Vestis.
Diversification Opportunities for Citizens Bancorp and Vestis
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citizens and Vestis is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and Vestis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestis 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 Vestis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestis has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Vestis go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Vestis
Given the investment horizon of 90 days Citizens Bancorp is expected to generate 4.19 times less return on investment than Vestis. But when comparing it to its historical volatility, Citizens Bancorp Investment is 1.63 times less risky than Vestis. It trades about 0.09 of its potential returns per unit of risk. Vestis is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,340 in Vestis on September 2, 2024 and sell it today you would earn a total of 268.00 from holding Vestis or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Bancorp Investment vs. Vestis
Performance |
| Timeline |
| Citizens Bancorp Inv |
| Vestis |
Citizens Bancorp and Vestis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Vestis
The main advantage of trading using opposite Citizens Bancorp and Vestis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Vestis 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 Vestis will offset losses from the drop in Vestis' 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 |
| Vestis vs. McGrath RentCorp | Vestis vs. Herc Holdings | Vestis vs. PROG Holdings | Vestis vs. Custom Truck One |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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