Correlation Between Citizens Financial and Logansport Financial
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Logansport 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 Financial and Logansport Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Financial Group, and Logansport Financial Corp, you can compare the effects of market volatilities on Citizens Financial and Logansport 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 Financial with a short position of Logansport Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Logansport Financial.
Diversification Opportunities for Citizens Financial and Logansport Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citizens and Logansport is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group, and Logansport Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logansport Financial Corp and Citizens Financial 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 Financial Group, are associated (or correlated) with Logansport Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logansport Financial Corp has no effect on the direction of Citizens Financial i.e., Citizens Financial and Logansport Financial go up and down completely randomly.
Pair Corralation between Citizens Financial and Logansport Financial
If you would invest (100.00) in Logansport Financial Corp on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Logansport Financial Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citizens Financial Group, vs. Logansport Financial Corp
Performance |
| Timeline |
| Citizens Financial Group, |
| Logansport Financial Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citizens Financial and Logansport Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and Logansport Financial
The main advantage of trading using opposite Citizens Financial and Logansport Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Logansport 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 Logansport Financial will offset losses from the drop in Logansport Financial's long position.| Citizens Financial vs. Genuine Parts Co | Citizens Financial vs. Westrock Coffee | Citizens Financial vs. Enersys | Citizens Financial vs. Universal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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