Correlation Between Citizens Holding and Investar Holding
Can any of the company-specific risk be diversified away by investing in both Citizens Holding and Investar Holding 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 Investar Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Holding and Investar Holding Corp, you can compare the effects of market volatilities on Citizens Holding and Investar Holding 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 Investar Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Holding and Investar Holding.
Diversification Opportunities for Citizens Holding and Investar Holding
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citizens and Investar is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Holding and Investar Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investar Holding Corp 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 Investar Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investar Holding Corp has no effect on the direction of Citizens Holding i.e., Citizens Holding and Investar Holding go up and down completely randomly.
Pair Corralation between Citizens Holding and Investar Holding
If you would invest 1,195 in Citizens Holding on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Citizens Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Citizens Holding vs. Investar Holding Corp
Performance |
| Timeline |
| Citizens Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Investar Holding Corp |
Citizens Holding and Investar Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Holding and Investar Holding
The main advantage of trading using opposite Citizens Holding and Investar Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Holding position performs unexpectedly, Investar Holding 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 Investar Holding will offset losses from the drop in Investar Holding'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 |
| Investar Holding vs. Magyar Bancorp | Investar Holding vs. Home Federal Bancorp | Investar Holding vs. Community West Bancshares | Investar Holding vs. First Northwest 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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