Correlation Between NASB Financial and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both NASB Financial 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 NASB Financial and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NASB Financial and Citizens Bancorp Investment, you can compare the effects of market volatilities on NASB Financial 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 NASB Financial with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NASB Financial and Citizens Bancorp.
Diversification Opportunities for NASB Financial and Citizens Bancorp
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NASB and Citizens is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding NASB Financial 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 NASB Financial 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 NASB Financial 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 NASB Financial i.e., NASB Financial and Citizens Bancorp go up and down completely randomly.
Pair Corralation between NASB Financial and Citizens Bancorp
If you would invest 2,382 in Citizens Bancorp Investment on August 29, 2024 and sell it today you would earn a total of 118.00 from holding Citizens Bancorp Investment or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
NASB Financial vs. Citizens Bancorp Investment
Performance |
| Timeline |
| NASB Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Citizens Bancorp Inv |
NASB Financial and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NASB Financial and Citizens Bancorp
The main advantage of trading using opposite NASB Financial and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NASB Financial 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.| NASB Financial vs. First Bankers Trustshares | NASB Financial vs. Greenville Federal Financial | NASB Financial vs. First Ottawa Bancshares | NASB Financial vs. Coastal Carolina Bancshares |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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