Correlation Between 1ST SUMMIT and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both 1ST SUMMIT and Citizens Financial 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 1ST SUMMIT and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1ST SUMMIT BANCORP and Citizens Financial Corp, you can compare the effects of market volatilities on 1ST SUMMIT and Citizens Financial 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 1ST SUMMIT with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1ST SUMMIT and Citizens Financial.
Diversification Opportunities for 1ST SUMMIT and Citizens Financial
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between 1ST and Citizens is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding 1ST SUMMIT BANCORP and Citizens Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Financial Corp and 1ST SUMMIT 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 1ST SUMMIT BANCORP are associated (or correlated) with Citizens Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Financial Corp has no effect on the direction of 1ST SUMMIT i.e., 1ST SUMMIT and Citizens Financial go up and down completely randomly.
Pair Corralation between 1ST SUMMIT and Citizens Financial
Given the investment horizon of 90 days 1ST SUMMIT BANCORP is expected to under-perform the Citizens Financial. In addition to that, 1ST SUMMIT is 4.17 times more volatile than Citizens Financial Corp. It trades about -0.27 of its total potential returns per unit of risk. Citizens Financial Corp is currently generating about 0.01 per unit of volatility. If you would invest 2,775 in Citizens Financial Corp on January 11, 2025 and sell it today you would earn a total of 1.00 from holding Citizens Financial Corp or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
1ST SUMMIT BANCORP vs. Citizens Financial Corp
Performance |
| Timeline |
| 1ST SUMMIT BANCORP |
| Citizens Financial Corp |
1ST SUMMIT and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1ST SUMMIT and Citizens Financial
The main advantage of trading using opposite 1ST SUMMIT and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1ST SUMMIT position performs unexpectedly, Citizens Financial 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 Financial will offset losses from the drop in Citizens Financial's long position.| 1ST SUMMIT vs. Apollo Bancorp | 1ST SUMMIT vs. Oregon Pacific Bancorp | 1ST SUMMIT vs. The Farmers Bank | 1ST SUMMIT vs. Community Bankers |
| Citizens Financial vs. Century Next Financial | Citizens Financial vs. Triad Business Bank | Citizens Financial vs. First Ottawa Bancshares | Citizens Financial vs. First Community Financial |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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