Correlation Between Noble Plc and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both Noble Plc 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 Noble Plc and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Noble plc and Citizens Bancorp Investment, you can compare the effects of market volatilities on Noble Plc 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 Noble Plc with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noble Plc and Citizens Bancorp.
Diversification Opportunities for Noble Plc and Citizens Bancorp
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Noble and Citizens is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Noble plc 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 Noble Plc 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 Noble plc 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 Noble Plc i.e., Noble Plc and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Noble Plc and Citizens Bancorp
Allowing for the 90-day total investment horizon Noble plc is expected to under-perform the Citizens Bancorp. In addition to that, Noble Plc is 1.37 times more volatile than Citizens Bancorp Investment. It trades about -0.06 of its total potential returns per unit of risk. Citizens Bancorp Investment is currently generating about -0.04 per unit of volatility. If you would invest 3,067 in Citizens Bancorp Investment on September 14, 2024 and sell it today you would lose (512.00) from holding Citizens Bancorp Investment or give up 16.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Noble plc vs. Citizens Bancorp Investment
Performance |
| Timeline |
| Noble plc |
| Citizens Bancorp Inv |
Noble Plc and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Noble Plc and Citizens Bancorp
The main advantage of trading using opposite Noble Plc and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noble Plc 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.| Noble Plc vs. Seadrill Limited | Noble Plc vs. Borr Drilling | Noble Plc vs. Patterson UTI Energy | Noble Plc vs. Transocean |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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