Correlation Between The9 and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both The9 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 The9 and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The9 Ltd ADR and Citizens Bancorp Investment, you can compare the effects of market volatilities on The9 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 The9 with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of The9 and Citizens Bancorp.
Diversification Opportunities for The9 and Citizens Bancorp
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between The9 and Citizens is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding The9 Ltd ADR 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 The9 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 The9 Ltd ADR 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 The9 i.e., The9 and Citizens Bancorp go up and down completely randomly.
Pair Corralation between The9 and Citizens Bancorp
Given the investment horizon of 90 days The9 Ltd ADR is expected to generate 1.99 times more return on investment than Citizens Bancorp. However, The9 is 1.99 times more volatile than Citizens Bancorp Investment. It trades about 0.29 of its potential returns per unit of risk. Citizens Bancorp Investment is currently generating about 0.06 per unit of risk. If you would invest 836.00 in The9 Ltd ADR on August 26, 2024 and sell it today you would earn a total of 270.00 from holding The9 Ltd ADR or generate 32.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The9 Ltd ADR vs. Citizens Bancorp Investment
Performance |
| Timeline |
| The9 Ltd ADR |
| Citizens Bancorp Inv |
The9 and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The9 and Citizens Bancorp
The main advantage of trading using opposite The9 and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The9 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.| The9 vs. Atari SA | The9 vs. Victory Square Technologies | The9 vs. Motorsport Gaming Us | The9 vs. Alpha Esports Tech |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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