Correlation Between Citizens Holding and Mainstreet Bank
Can any of the company-specific risk be diversified away by investing in both Citizens Holding and Mainstreet Bank 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 Mainstreet Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Holding and Mainstreet Bank, you can compare the effects of market volatilities on Citizens Holding and Mainstreet Bank 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 Mainstreet Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Holding and Mainstreet Bank.
Diversification Opportunities for Citizens Holding and Mainstreet Bank
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citizens and Mainstreet is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Holding and Mainstreet Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstreet Bank 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 Mainstreet Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstreet Bank has no effect on the direction of Citizens Holding i.e., Citizens Holding and Mainstreet Bank go up and down completely randomly.
Pair Corralation between Citizens Holding and Mainstreet Bank
If you would invest 1,195 in Citizens Holding on November 3, 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 | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citizens Holding vs. Mainstreet Bank
Performance |
| Timeline |
| Citizens Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mainstreet Bank |
Citizens Holding and Mainstreet Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Holding and Mainstreet Bank
The main advantage of trading using opposite Citizens Holding and Mainstreet Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Holding position performs unexpectedly, Mainstreet Bank 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 Mainstreet Bank will offset losses from the drop in Mainstreet Bank'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 |
| Mainstreet Bank vs. Oak Valley Bancorp | Mainstreet Bank vs. Home Federal Bancorp | Mainstreet Bank vs. LINKBANCORP | Mainstreet Bank 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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