Correlation Between Glen Burnie and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both Glen Burnie 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 Glen Burnie and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glen Burnie Bancorp and Citizens Bancorp Investment, you can compare the effects of market volatilities on Glen Burnie 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 Glen Burnie with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glen Burnie and Citizens Bancorp.
Diversification Opportunities for Glen Burnie and Citizens Bancorp
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Glen and Citizens is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Glen Burnie 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 Glen Burnie 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 Glen Burnie 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 Glen Burnie i.e., Glen Burnie and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Glen Burnie and Citizens Bancorp
Given the investment horizon of 90 days Glen Burnie Bancorp is expected to generate 30.91 times more return on investment than Citizens Bancorp. However, Glen Burnie is 30.91 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 811.00 in Glen Burnie Bancorp on August 26, 2024 and sell it today you would lose (251.00) from holding Glen Burnie Bancorp or give up 30.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glen Burnie Bancorp vs. Citizens Bancorp Investment
Performance |
| Timeline |
| Glen Burnie Bancorp |
| Citizens Bancorp Inv |
Glen Burnie and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glen Burnie and Citizens Bancorp
The main advantage of trading using opposite Glen Burnie and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glen Burnie 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.| Glen Burnie vs. First Bankers Trustshares | Glen Burnie vs. Greenville Federal Financial | Glen Burnie vs. First Ottawa Bancshares | Glen Burnie vs. Coastal Carolina Bancshares |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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