Correlation Between Greenville Federal and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both Greenville Federal 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 Greenville Federal and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenville Federal Financial and Citizens Financial Corp, you can compare the effects of market volatilities on Greenville Federal 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 Greenville Federal with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenville Federal and Citizens Financial.
Diversification Opportunities for Greenville Federal and Citizens Financial
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greenville and Citizens is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Greenville Federal Financial 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 Greenville Federal 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 Greenville Federal Financial 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 Greenville Federal i.e., Greenville Federal and Citizens Financial go up and down completely randomly.
Pair Corralation between Greenville Federal and Citizens Financial
Given the investment horizon of 90 days Greenville Federal Financial is expected to under-perform the Citizens Financial. But the pink sheet apears to be less risky and, when comparing its historical volatility, Greenville Federal Financial is 2.78 times less risky than Citizens Financial. The pink sheet trades about -0.21 of its potential returns per unit of risk. The Citizens Financial Corp is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,345 in Citizens Financial Corp on September 1, 2024 and sell it today you would earn a total of 255.00 from holding Citizens Financial Corp or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Greenville Federal Financial vs. Citizens Financial Corp
Performance |
| Timeline |
| Greenville Federal |
| Citizens Financial Corp |
Greenville Federal and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenville Federal and Citizens Financial
The main advantage of trading using opposite Greenville Federal and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenville Federal 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.| Greenville Federal vs. First Bankers Trustshares | Greenville Federal vs. First Ottawa Bancshares | Greenville Federal vs. Coastal Carolina Bancshares | Greenville Federal vs. Citizens Bancorp Investment |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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