Correlation Between First Keystone and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both First Keystone 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 First Keystone and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Keystone Corp and Citizens Bancorp Investment, you can compare the effects of market volatilities on First Keystone 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 First Keystone with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Keystone and Citizens Bancorp.
Diversification Opportunities for First Keystone and Citizens Bancorp
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Citizens is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding First Keystone Corp 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 First Keystone 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 First Keystone Corp 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 First Keystone i.e., First Keystone and Citizens Bancorp go up and down completely randomly.
Pair Corralation between First Keystone and Citizens Bancorp
Given the investment horizon of 90 days First Keystone Corp is expected to generate 2.37 times more return on investment than Citizens Bancorp. However, First Keystone is 2.37 times more volatile than Citizens Bancorp Investment. It trades about 0.01 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 1,567 in First Keystone Corp on August 29, 2024 and sell it today you would lose (48.00) from holding First Keystone Corp or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.82% |
| Values | Daily Returns |
First Keystone Corp vs. Citizens Bancorp Investment
Performance |
| Timeline |
| First Keystone Corp |
| Citizens Bancorp Inv |
First Keystone and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Keystone and Citizens Bancorp
The main advantage of trading using opposite First Keystone and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Keystone 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.| First Keystone vs. Citizens Bancorp Investment | First Keystone vs. Greenville Federal Financial | First Keystone vs. Oak Ridge Financial | First Keystone vs. Main Street Financial |
| Citizens Bancorp vs. Greenville Federal Financial | Citizens Bancorp vs. First Ottawa Bancshares | Citizens Bancorp vs. Coastal Carolina Bancshares | Citizens Bancorp vs. First Bankers Trustshares |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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