Correlation Between Chemung Financial and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both Chemung Financial 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 Chemung Financial and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemung Financial Corp and Citizens Bancorp Investment, you can compare the effects of market volatilities on Chemung Financial 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 Chemung Financial with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemung Financial and Citizens Bancorp.
Diversification Opportunities for Chemung Financial and Citizens Bancorp
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chemung and Citizens is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Chemung Financial Corp 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 Chemung 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 Chemung Financial Corp 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 Chemung Financial i.e., Chemung Financial and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Chemung Financial and Citizens Bancorp
Given the investment horizon of 90 days Chemung Financial Corp is expected to generate 1.63 times more return on investment than Citizens Bancorp. However, Chemung Financial is 1.63 times more volatile than Citizens Bancorp Investment. It trades about 0.14 of its potential returns per unit of risk. Citizens Bancorp Investment is currently generating about 0.03 per unit of risk. If you would invest 4,672 in Chemung Financial Corp on November 27, 2024 and sell it today you would earn a total of 436.00 from holding Chemung Financial Corp or generate 9.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemung Financial Corp vs. Citizens Bancorp Investment
Performance |
| Timeline |
| Chemung Financial Corp |
| Citizens Bancorp Inv |
Chemung Financial and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemung Financial and Citizens Bancorp
The main advantage of trading using opposite Chemung Financial and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemung Financial 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.| Chemung Financial vs. Finward Bancorp | Chemung Financial vs. Community West Bancshares | Chemung Financial vs. First Financial Northwest | Chemung Financial vs. Oak Valley Bancorp |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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