Correlation Between Citizens Bancorp and Bank of San Francisco
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Bank of San Francisco 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 Bancorp and Bank of San Francisco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Bancorp of and Bank of San, you can compare the effects of market volatilities on Citizens Bancorp and Bank of San Francisco 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 Bancorp with a short position of Bank of San Francisco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Bank of San Francisco.
Diversification Opportunities for Citizens Bancorp and Bank of San Francisco
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citizens and Bank is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp of and Bank of San in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of San Francisco and Citizens Bancorp 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 Bancorp of are associated (or correlated) with Bank of San Francisco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of San Francisco has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Bank of San Francisco go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Bank of San Francisco
Given the investment horizon of 90 days Citizens Bancorp is expected to generate 2.13 times less return on investment than Bank of San Francisco. In addition to that, Citizens Bancorp is 1.46 times more volatile than Bank of San. It trades about 0.03 of its total potential returns per unit of risk. Bank of San is currently generating about 0.1 per unit of volatility. If you would invest 1,900 in Bank of San on August 31, 2024 and sell it today you would earn a total of 1,115 from holding Bank of San or generate 58.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 75.34% |
| Values | Daily Returns |
Citizens Bancorp of vs. Bank of San
Performance |
| Timeline |
| Citizens Bancorp |
| Bank of San Francisco |
Citizens Bancorp and Bank of San Francisco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Bank of San Francisco
The main advantage of trading using opposite Citizens Bancorp and Bank of San Francisco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Bank of San Francisco 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 Bank of San Francisco will offset losses from the drop in Bank of San Francisco's long position.| Citizens Bancorp vs. Pioneer Bankcorp | Citizens Bancorp vs. Liberty Northwest Bancorp | Citizens Bancorp vs. First Community | Citizens Bancorp vs. Coeur dAlene Bancorp |
| Bank of San Francisco vs. Pioneer Bankcorp | Bank of San Francisco vs. Liberty Northwest Bancorp | Bank of San Francisco vs. Summit Bancshares | Bank of San Francisco vs. Washington Business Bank |
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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