Correlation Between Hawkins and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both Hawkins 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 Hawkins and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and Citizens Bancorp Investment, you can compare the effects of market volatilities on Hawkins 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 Hawkins with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Citizens Bancorp.
Diversification Opportunities for Hawkins and Citizens Bancorp
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hawkins and Citizens is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins 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 Hawkins 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 Hawkins 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 Hawkins i.e., Hawkins and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Hawkins and Citizens Bancorp
Given the investment horizon of 90 days Hawkins is expected to generate 1.37 times less return on investment than Citizens Bancorp. In addition to that, Hawkins is 1.45 times more volatile than Citizens Bancorp Investment. It trades about 0.05 of its total potential returns per unit of risk. Citizens Bancorp Investment is currently generating about 0.09 per unit of volatility. If you would invest 2,283 in Citizens Bancorp Investment on August 30, 2024 and sell it today you would earn a total of 217.00 from holding Citizens Bancorp Investment or generate 9.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawkins vs. Citizens Bancorp Investment
Performance |
| Timeline |
| Hawkins |
| Citizens Bancorp Inv |
Hawkins and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkins and Citizens Bancorp
The main advantage of trading using opposite Hawkins and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins 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.| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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