Correlation Between Citizens Community and Conifer Holding
Can any of the company-specific risk be diversified away by investing in both Citizens Community and Conifer Holding 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 Conifer Holding 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 Conifer Holding, you can compare the effects of market volatilities on Citizens Community and Conifer Holding 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 Conifer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Community and Conifer Holding.
Diversification Opportunities for Citizens Community and Conifer Holding
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citizens and Conifer is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Community Bancorp and Conifer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifer Holding 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 Conifer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifer Holding has no effect on the direction of Citizens Community i.e., Citizens Community and Conifer Holding go up and down completely randomly.
Pair Corralation between Citizens Community and Conifer Holding
Given the investment horizon of 90 days Citizens Community Bancorp is expected to under-perform the Conifer Holding. But the stock apears to be less risky and, when comparing its historical volatility, Citizens Community Bancorp is 4.66 times less risky than Conifer Holding. The stock trades about -0.12 of its potential returns per unit of risk. The Conifer Holding is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Conifer Holding on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Conifer Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citizens Community Bancorp vs. Conifer Holding
Performance |
| Timeline |
| Citizens Community |
| Conifer Holding |
Citizens Community and Conifer Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Community and Conifer Holding
The main advantage of trading using opposite Citizens Community and Conifer Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Community position performs unexpectedly, Conifer Holding 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 Conifer Holding will offset losses from the drop in Conifer Holding'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 |
| Conifer Holding vs. Creative Media Community | Conifer Holding vs. Kingstone Companies | Conifer Holding vs. Canterbury Park Holding |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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