Correlation Between Conifer Holding and Citizens Community
Can any of the company-specific risk be diversified away by investing in both Conifer Holding and Citizens Community 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 Conifer Holding and Citizens Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conifer Holding and Citizens Community Bancorp, you can compare the effects of market volatilities on Conifer Holding and Citizens Community 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 Conifer Holding with a short position of Citizens Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conifer Holding and Citizens Community.
Diversification Opportunities for Conifer Holding and Citizens Community
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Conifer and Citizens is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Conifer Holding and Citizens Community Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Community and Conifer 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 Conifer Holding are associated (or correlated) with Citizens Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Community has no effect on the direction of Conifer Holding i.e., Conifer Holding and Citizens Community go up and down completely randomly.
Pair Corralation between Conifer Holding and Citizens Community
Given the investment horizon of 90 days Conifer Holding is expected to generate 5.58 times more return on investment than Citizens Community. However, Conifer Holding is 5.58 times more volatile than Citizens Community Bancorp. It trades about 0.03 of its potential returns per unit of risk. Citizens Community Bancorp is currently generating about 0.12 per unit of risk. If you would invest 134.00 in Conifer Holding on September 2, 2024 and sell it today you would lose (24.00) from holding Conifer Holding or give up 17.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Conifer Holding vs. Citizens Community Bancorp
Performance |
| Timeline |
| Conifer Holding |
| Citizens Community |
Conifer Holding and Citizens Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conifer Holding and Citizens Community
The main advantage of trading using opposite Conifer Holding and Citizens Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conifer Holding position performs unexpectedly, Citizens Community 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 Citizens Community will offset losses from the drop in Citizens Community's long position.| Conifer Holding vs. Wilhelmina | Conifer Holding vs. Unico American | Conifer Holding vs. Creative Media Community | Conifer Holding vs. Kingstone Companies |
| Citizens Community vs. Home Federal Bancorp | Citizens Community vs. First Financial Northwest | Citizens Community vs. First Northwest Bancorp | Citizens Community vs. First Capital |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world |