Correlation Between Citizens Bancorp and First Bancshares
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and First Bancshares 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 First Bancshares 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 First Bancshares, you can compare the effects of market volatilities on Citizens Bancorp and First Bancshares 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 First Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and First Bancshares.
Diversification Opportunities for Citizens Bancorp and First Bancshares
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citizens and First is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp of and First Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bancshares 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 First Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bancshares has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and First Bancshares go up and down completely randomly.
Pair Corralation between Citizens Bancorp and First Bancshares
If you would invest 2,601 in Citizens Bancorp of on September 3, 2024 and sell it today you would earn a total of 499.00 from holding Citizens Bancorp of or generate 19.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
Citizens Bancorp of vs. First Bancshares
Performance |
| Timeline |
| Citizens Bancorp |
| First Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citizens Bancorp and First Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Bancorp and First Bancshares
The main advantage of trading using opposite Citizens Bancorp and First Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, First Bancshares 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 First Bancshares will offset losses from the drop in First Bancshares' long position.| Citizens Bancorp vs. Western Asset Global | Citizens Bancorp vs. Invesco Trust For | Citizens Bancorp vs. Logan Ridge Finance | Citizens Bancorp vs. Invesco Advantage MIT |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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