Correlation Between Citizens Holding and LINKBANCORP
Can any of the company-specific risk be diversified away by investing in both Citizens Holding and LINKBANCORP 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 LINKBANCORP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Holding and LINKBANCORP, you can compare the effects of market volatilities on Citizens Holding and LINKBANCORP 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 LINKBANCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Holding and LINKBANCORP.
Diversification Opportunities for Citizens Holding and LINKBANCORP
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citizens and LINKBANCORP is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Holding and LINKBANCORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINKBANCORP 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 LINKBANCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINKBANCORP has no effect on the direction of Citizens Holding i.e., Citizens Holding and LINKBANCORP go up and down completely randomly.
Pair Corralation between Citizens Holding and LINKBANCORP
If you would invest 640.00 in LINKBANCORP on August 25, 2024 and sell it today you would earn a total of 118.00 from holding LINKBANCORP or generate 18.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Citizens Holding vs. LINKBANCORP
Performance |
| Timeline |
| Citizens Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LINKBANCORP |
Citizens Holding and LINKBANCORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Holding and LINKBANCORP
The main advantage of trading using opposite Citizens Holding and LINKBANCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Holding position performs unexpectedly, LINKBANCORP 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 LINKBANCORP will offset losses from the drop in LINKBANCORP'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 |
| LINKBANCORP vs. Home Federal Bancorp | LINKBANCORP vs. Lake Shore Bancorp | LINKBANCORP vs. Community West Bancshares | LINKBANCORP vs. Magyar 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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