Correlation Between Old Point and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both Old Point 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 Old Point and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Point Financial and Citizens Bancorp Investment, you can compare the effects of market volatilities on Old Point 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 Old Point with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Point and Citizens Bancorp.
Diversification Opportunities for Old Point and Citizens Bancorp
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Old and Citizens is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Old Point 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 Old Point 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 Old Point 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 Old Point i.e., Old Point and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Old Point and Citizens Bancorp
Given the investment horizon of 90 days Old Point Financial is expected to generate 1.77 times more return on investment than Citizens Bancorp. However, Old Point is 1.77 times more volatile than Citizens Bancorp Investment. It trades about 0.01 of its potential returns per unit of risk. Citizens Bancorp Investment is currently generating about -0.05 per unit of risk. If you would invest 2,285 in Old Point Financial on September 3, 2024 and sell it today you would lose (33.00) from holding Old Point Financial or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Old Point Financial vs. Citizens Bancorp Investment
Performance |
| Timeline |
| Old Point Financial |
| Citizens Bancorp Inv |
Old Point and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Point and Citizens Bancorp
The main advantage of trading using opposite Old Point and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Point 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.| Old Point vs. First Community | Old Point vs. Oak Valley Bancorp | Old Point vs. Chemung Financial Corp | Old Point vs. Home Bancorp |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |