Correlation Between Lewis Clark and First Citizens
Can any of the company-specific risk be diversified away by investing in both Lewis Clark and First Citizens 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 Lewis Clark and First Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lewis Clark Bancorp and The First Citizens, you can compare the effects of market volatilities on Lewis Clark and First Citizens 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 Lewis Clark with a short position of First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lewis Clark and First Citizens.
Diversification Opportunities for Lewis Clark and First Citizens
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lewis and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lewis Clark Bancorp and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and Lewis Clark 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 Lewis Clark Bancorp are associated (or correlated) with First Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Citizens has no effect on the direction of Lewis Clark i.e., Lewis Clark and First Citizens go up and down completely randomly.
Pair Corralation between Lewis Clark and First Citizens
Given the investment horizon of 90 days Lewis Clark Bancorp is expected to generate 2.11 times more return on investment than First Citizens. However, Lewis Clark is 2.11 times more volatile than The First Citizens. It trades about 0.0 of its potential returns per unit of risk. The First Citizens is currently generating about -0.02 per unit of risk. If you would invest 3,505 in Lewis Clark Bancorp on August 24, 2024 and sell it today you would lose (505.00) from holding Lewis Clark Bancorp or give up 14.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 60.53% |
| Values | Daily Returns |
Lewis Clark Bancorp vs. The First Citizens
Performance |
| Timeline |
| Lewis Clark Bancorp |
| First Citizens |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lewis Clark and First Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lewis Clark and First Citizens
The main advantage of trading using opposite Lewis Clark and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lewis Clark position performs unexpectedly, First Citizens 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 First Citizens will offset losses from the drop in First Citizens' long position.| Lewis Clark vs. Nedbank Group | Lewis Clark vs. Standard Bank Group | Lewis Clark vs. Bank Central Asia | Lewis Clark vs. PSB Holdings |
| First Citizens vs. Hooker Furniture | First Citizens vs. Mesa Air Group | First Citizens vs. Ryanair Holdings PLC | First Citizens vs. United Guardian |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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