Correlation Between Citizens Bancorp and Pioneer Bankcorp
Can any of the company-specific risk be diversified away by investing in both Citizens Bancorp and Pioneer Bankcorp 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 Pioneer Bankcorp 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 Pioneer Bankcorp, you can compare the effects of market volatilities on Citizens Bancorp and Pioneer Bankcorp 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 Pioneer Bankcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Bancorp and Pioneer Bankcorp.
Diversification Opportunities for Citizens Bancorp and Pioneer Bankcorp
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citizens and Pioneer is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp of and Pioneer Bankcorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Bankcorp 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 Pioneer Bankcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Bankcorp has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and Pioneer Bankcorp go up and down completely randomly.
Pair Corralation between Citizens Bancorp and Pioneer Bankcorp
Given the investment horizon of 90 days Citizens Bancorp is expected to generate 2.31 times less return on investment than Pioneer Bankcorp. In addition to that, Citizens Bancorp is 1.78 times more volatile than Pioneer Bankcorp. It trades about 0.01 of its total potential returns per unit of risk. Pioneer Bankcorp is currently generating about 0.05 per unit of volatility. If you would invest 4,105 in Pioneer Bankcorp on November 26, 2024 and sell it today you would earn a total of 1,195 from holding Pioneer Bankcorp or generate 29.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 49.0% |
Values | Daily Returns |
Citizens Bancorp of vs. Pioneer Bankcorp
Performance |
Timeline |
Citizens Bancorp |
Pioneer Bankcorp |
Citizens Bancorp and Pioneer Bankcorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citizens Bancorp and Pioneer Bankcorp
The main advantage of trading using opposite Citizens Bancorp and Pioneer Bankcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Bancorp position performs unexpectedly, Pioneer Bankcorp 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 Pioneer Bankcorp will offset losses from the drop in Pioneer Bankcorp's long position.Citizens Bancorp vs. Ares Dynamic Credit | ||
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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