Correlation Between Citizens Bancorp and CBB Bancorp
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and CBB Bancorp 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 CBB Bancorp 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 CBB Bancorp, you can compare the effects of market volatilities on Citizens Bancorp and CBB Bancorp 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 CBB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and CBB Bancorp.
Diversification Opportunities for Citizens Bancorp and CBB Bancorp
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citizens and CBB is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp of and CBB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBB Bancorp 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 CBB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBB Bancorp has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and CBB Bancorp go up and down completely randomly.
Pair Corralation between Citizens Bancorp and CBB Bancorp
If you would invest 2,900 in Citizens Bancorp of on August 28, 2024 and sell it today you would earn a total of 200.00 from holding Citizens Bancorp of or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citizens Bancorp of vs. CBB Bancorp
Performance |
| Timeline |
| Citizens Bancorp |
| CBB Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citizens Bancorp and CBB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and CBB Bancorp
The main advantage of trading using opposite Citizens Bancorp and CBB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, CBB Bancorp 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 CBB Bancorp will offset losses from the drop in CBB Bancorp's long position.| Citizens Bancorp vs. Invesco High Income | Citizens Bancorp vs. Blackrock Muniholdings Ny | Citizens Bancorp vs. MFS Investment Grade | Citizens Bancorp vs. Federated Premier Municipal |
| CBB Bancorp vs. CIB Marine Bancshares | CBB Bancorp vs. United Bancorporation of | CBB Bancorp vs. U I Financial | CBB Bancorp vs. Heartland Banccorp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |