Correlation Between Citizens Financial and Parkway Acquisition
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Parkway Acquisition 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 Parkway Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Financial Corp and Parkway Acquisition Corp, you can compare the effects of market volatilities on Citizens Financial and Parkway Acquisition 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 Parkway Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Parkway Acquisition.
Diversification Opportunities for Citizens Financial and Parkway Acquisition
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citizens and Parkway is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Corp and Parkway Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parkway Acquisition 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 Corp are associated (or correlated) with Parkway Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parkway Acquisition Corp has no effect on the direction of Citizens Financial i.e., Citizens Financial and Parkway Acquisition go up and down completely randomly.
Pair Corralation between Citizens Financial and Parkway Acquisition
If you would invest 2,345 in Citizens Financial Corp on September 1, 2024 and sell it today you would earn a total of 255.00 from holding Citizens Financial Corp or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citizens Financial Corp vs. Parkway Acquisition Corp
Performance |
| Timeline |
| Citizens Financial Corp |
| Parkway Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citizens Financial and Parkway Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and Parkway Acquisition
The main advantage of trading using opposite Citizens Financial and Parkway Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Parkway Acquisition 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 Parkway Acquisition will offset losses from the drop in Parkway Acquisition's long position.| Citizens Financial vs. Century Next Financial | Citizens Financial vs. Triad Business Bank | Citizens Financial vs. First Ottawa Bancshares | Citizens Financial vs. First Community Financial |
| Parkway Acquisition vs. First Bankers Trustshares | Parkway Acquisition vs. Greenville Federal Financial | Parkway Acquisition vs. First Ottawa Bancshares | Parkway Acquisition vs. Coastal Carolina Bancshares |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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