Correlation Between Coastal Carolina and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both Coastal Carolina and Citizens Bancorp 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 Coastal Carolina and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coastal Carolina Bancshares and Citizens Bancorp Investment, you can compare the effects of market volatilities on Coastal Carolina and Citizens Bancorp 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 Coastal Carolina with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coastal Carolina and Citizens Bancorp.
Diversification Opportunities for Coastal Carolina and Citizens Bancorp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coastal and Citizens is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Coastal Carolina Bancshares and Citizens Bancorp Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Bancorp Inv and Coastal Carolina 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 Coastal Carolina Bancshares are associated (or correlated) with Citizens Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Bancorp Inv has no effect on the direction of Coastal Carolina i.e., Coastal Carolina and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Coastal Carolina and Citizens Bancorp
Given the investment horizon of 90 days Coastal Carolina Bancshares is expected to generate 0.55 times more return on investment than Citizens Bancorp. However, Coastal Carolina Bancshares is 1.81 times less risky than Citizens Bancorp. It trades about 0.07 of its potential returns per unit of risk. Citizens Bancorp Investment is currently generating about -0.05 per unit of risk. If you would invest 935.00 in Coastal Carolina Bancshares on August 29, 2024 and sell it today you would earn a total of 166.00 from holding Coastal Carolina Bancshares or generate 17.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coastal Carolina Bancshares vs. Citizens Bancorp Investment
Performance |
| Timeline |
| Coastal Carolina Ban |
| Citizens Bancorp Inv |
Coastal Carolina and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coastal Carolina and Citizens Bancorp
The main advantage of trading using opposite Coastal Carolina and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coastal Carolina position performs unexpectedly, Citizens Bancorp 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 Citizens Bancorp will offset losses from the drop in Citizens Bancorp's long position.| Coastal Carolina vs. First Bankers Trustshares | Coastal Carolina vs. Greenville Federal Financial | Coastal Carolina vs. First Ottawa Bancshares | Coastal Carolina vs. Citizens Bancorp Investment |
| Citizens Bancorp vs. Greenville Federal Financial | Citizens Bancorp vs. First Ottawa Bancshares | Citizens Bancorp vs. Coastal Carolina Bancshares | Citizens Bancorp vs. First Bankers Trustshares |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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