Correlation Between Citizens Holding and IF Bancorp
Can any of the company-specific risk be diversified away by investing in both Citizens Holding and IF 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 Citizens Holding and IF Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Holding and IF Bancorp, you can compare the effects of market volatilities on Citizens Holding and IF 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 Citizens Holding with a short position of IF Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Holding and IF Bancorp.
Diversification Opportunities for Citizens Holding and IF Bancorp
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citizens and IROQ is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Holding and IF Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IF Bancorp and Citizens Holding 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 Holding are associated (or correlated) with IF Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IF Bancorp has no effect on the direction of Citizens Holding i.e., Citizens Holding and IF Bancorp go up and down completely randomly.
Pair Corralation between Citizens Holding and IF Bancorp
If you would invest 2,284 in IF Bancorp on November 2, 2024 and sell it today you would earn a total of 17.00 from holding IF Bancorp or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Citizens Holding vs. IF Bancorp
Performance |
| Timeline |
| Citizens Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IF Bancorp |
Citizens Holding and IF Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Holding and IF Bancorp
The main advantage of trading using opposite Citizens Holding and IF Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Holding position performs unexpectedly, IF 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 IF Bancorp will offset losses from the drop in IF Bancorp's long position.| Citizens Holding vs. Home Federal Bancorp | Citizens Holding vs. Lake Shore Bancorp | Citizens Holding vs. Community West Bancshares | Citizens Holding vs. Magyar Bancorp |
| IF Bancorp vs. Home Bancorp | IF Bancorp vs. Commerzbank AG PK | IF Bancorp vs. ConnectOne Bancorp | IF Bancorp vs. Home Federal Bancorp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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