Correlation Between Citizens Bancorp and Crazy Woman
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Crazy Woman 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 Crazy Woman 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 Crazy Woman Creek, you can compare the effects of market volatilities on Citizens Bancorp and Crazy Woman 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 Crazy Woman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Crazy Woman.
Diversification Opportunities for Citizens Bancorp and Crazy Woman
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citizens and Crazy is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp of and Crazy Woman Creek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crazy Woman Creek 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 Crazy Woman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crazy Woman Creek has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Crazy Woman go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Crazy Woman
Given the investment horizon of 90 days Citizens Bancorp is expected to generate 2.67 times less return on investment than Crazy Woman. In addition to that, Citizens Bancorp is 2.68 times more volatile than Crazy Woman Creek. It trades about 0.03 of its total potential returns per unit of risk. Crazy Woman Creek is currently generating about 0.22 per unit of volatility. If you would invest 2,230 in Crazy Woman Creek on August 31, 2024 and sell it today you would earn a total of 120.00 from holding Crazy Woman Creek or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 11.39% |
| Values | Daily Returns |
Citizens Bancorp of vs. Crazy Woman Creek
Performance |
| Timeline |
| Citizens Bancorp |
| Crazy Woman Creek |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citizens Bancorp and Crazy Woman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and Crazy Woman
The main advantage of trading using opposite Citizens Bancorp and Crazy Woman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Crazy Woman 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 Crazy Woman will offset losses from the drop in Crazy Woman'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 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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