Correlation Between Fidelity and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both Fidelity and Citizens 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 Fidelity and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity DD Bancorp and Citizens Bancorp Investment, you can compare the effects of market volatilities on Fidelity and Citizens 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 Fidelity with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity and Citizens Bancorp.
Diversification Opportunities for Fidelity and Citizens Bancorp
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and Citizens is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity DD Bancorp and Citizens Bancorp Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Bancorp Inv and Fidelity 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 Fidelity DD Bancorp are associated (or correlated) with Citizens Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Bancorp Inv has no effect on the direction of Fidelity i.e., Fidelity and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Fidelity and Citizens Bancorp
Given the investment horizon of 90 days Fidelity DD Bancorp is expected to generate 1.62 times more return on investment than Citizens Bancorp. However, Fidelity is 1.62 times more volatile than Citizens Bancorp Investment. It trades about 0.03 of its potential returns per unit of risk. Citizens Bancorp Investment is currently generating about -0.05 per unit of risk. If you would invest 4,422 in Fidelity DD Bancorp on August 26, 2024 and sell it today you would earn a total of 949.00 from holding Fidelity DD Bancorp or generate 21.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity DD Bancorp vs. Citizens Bancorp Investment
Performance |
| Timeline |
| Fidelity DD Bancorp |
| Citizens Bancorp Inv |
Fidelity and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity and Citizens Bancorp
The main advantage of trading using opposite Fidelity and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity position performs unexpectedly, Citizens 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 Citizens Bancorp will offset losses from the drop in Citizens Bancorp's long position.| Fidelity vs. Chemung Financial Corp | Fidelity vs. Oak Valley Bancorp | Fidelity vs. First Community | Fidelity vs. National Bankshares |
| Citizens Bancorp vs. Standard Bank Group | Citizens Bancorp vs. PSB Holdings | Citizens Bancorp vs. United Overseas Bank | Citizens Bancorp vs. Turkiye Garanti Bankasi |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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