Correlation Between Citizens Holding and Virginia National
Can any of the company-specific risk be diversified away by investing in both Citizens Holding and Virginia National 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 Virginia National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Holding and Virginia National Bankshares, you can compare the effects of market volatilities on Citizens Holding and Virginia National 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 Virginia National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Holding and Virginia National.
Diversification Opportunities for Citizens Holding and Virginia National
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citizens and Virginia is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Holding and Virginia National Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virginia National 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 Virginia National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virginia National has no effect on the direction of Citizens Holding i.e., Citizens Holding and Virginia National go up and down completely randomly.
Pair Corralation between Citizens Holding and Virginia National
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 | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Citizens Holding vs. Virginia National Bankshares
Performance |
| Timeline |
| Citizens Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Virginia National |
Citizens Holding and Virginia National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Holding and Virginia National
The main advantage of trading using opposite Citizens Holding and Virginia National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Holding position performs unexpectedly, Virginia National 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 Virginia National will offset losses from the drop in Virginia National'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 |
| Virginia National vs. Finward Bancorp | Virginia National vs. Community West Bancshares | Virginia National vs. First Financial Northwest | Virginia National vs. Oak Valley 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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