Correlation Between Citizens Community and Sierra Bancorp
Can any of the company-specific risk be diversified away by investing in both Citizens Community and Sierra 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 Community and Sierra Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Community Bancorp and Sierra Bancorp, you can compare the effects of market volatilities on Citizens Community and Sierra 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 Community with a short position of Sierra Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Community and Sierra Bancorp.
Diversification Opportunities for Citizens Community and Sierra Bancorp
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citizens and Sierra is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Community Bancorp and Sierra Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sierra Bancorp and Citizens Community 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 Community Bancorp are associated (or correlated) with Sierra Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sierra Bancorp has no effect on the direction of Citizens Community i.e., Citizens Community and Sierra Bancorp go up and down completely randomly.
Pair Corralation between Citizens Community and Sierra Bancorp
Given the investment horizon of 90 days Citizens Community is expected to generate 1.03 times less return on investment than Sierra Bancorp. But when comparing it to its historical volatility, Citizens Community Bancorp is 3.18 times less risky than Sierra Bancorp. It trades about 0.42 of its potential returns per unit of risk. Sierra Bancorp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,869 in Sierra Bancorp on August 24, 2024 and sell it today you would earn a total of 370.00 from holding Sierra Bancorp or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Community Bancorp vs. Sierra Bancorp
Performance |
| Timeline |
| Citizens Community |
| Sierra Bancorp |
Citizens Community and Sierra Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Community and Sierra Bancorp
The main advantage of trading using opposite Citizens Community and Sierra Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Community position performs unexpectedly, Sierra 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 Sierra Bancorp will offset losses from the drop in Sierra Bancorp's long position.| Citizens Community vs. Home Federal Bancorp | Citizens Community vs. First Financial Northwest | Citizens Community vs. First Northwest Bancorp | Citizens Community vs. First Capital |
| Sierra Bancorp vs. Home Federal Bancorp | Sierra Bancorp vs. First Financial Northwest | Sierra Bancorp vs. First Northwest Bancorp | Sierra Bancorp vs. First Capital |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |