Correlation Between First Ship and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both First Ship 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 Ship 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 Ship Lease and Citizens Bancorp Investment, you can compare the effects of market volatilities on First Ship 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 Ship with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Citizens Bancorp.
Diversification Opportunities for First Ship and Citizens Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Citizens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease 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 Ship 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 Ship Lease 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 Ship i.e., First Ship and Citizens Bancorp go up and down completely randomly.
Pair Corralation between First Ship and Citizens Bancorp
Assuming the 90 days horizon First Ship Lease is expected to generate 1.84 times more return on investment than Citizens Bancorp. However, First Ship is 1.84 times more volatile than Citizens Bancorp Investment. It trades about 0.04 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 2.50 in First Ship Lease on September 2, 2024 and sell it today you would earn a total of 1.50 from holding First Ship Lease or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
First Ship Lease vs. Citizens Bancorp Investment
Performance |
| Timeline |
| First Ship Lease |
| Citizens Bancorp Inv |
First Ship and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and Citizens Bancorp
The main advantage of trading using opposite First Ship and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship 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 Ship vs. Monster Beverage Corp | First Ship vs. SNDL Inc | First Ship vs. Hudson Pacific Properties | First Ship vs. Mativ Holdings |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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