Correlation Between Parkway Acquisition and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both Parkway Acquisition and Citizens Financial 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 Parkway Acquisition and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Parkway Acquisition Corp and Citizens Financial Corp, you can compare the effects of market volatilities on Parkway Acquisition and Citizens Financial 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 Parkway Acquisition with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parkway Acquisition and Citizens Financial.
Diversification Opportunities for Parkway Acquisition and Citizens Financial
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Parkway and Citizens is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Parkway Acquisition Corp and Citizens Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Financial Corp and Parkway Acquisition 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 Parkway Acquisition Corp are associated (or correlated) with Citizens Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Financial Corp has no effect on the direction of Parkway Acquisition i.e., Parkway Acquisition and Citizens Financial go up and down completely randomly.
Pair Corralation between Parkway Acquisition and Citizens Financial
If you would invest 2,425 in Citizens Financial Corp on November 2, 2024 and sell it today you would earn a total of 425.00 from holding Citizens Financial Corp or generate 17.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Parkway Acquisition Corp vs. Citizens Financial Corp
Performance |
| Timeline |
| Parkway Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Citizens Financial Corp |
Parkway Acquisition and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parkway Acquisition and Citizens Financial
The main advantage of trading using opposite Parkway Acquisition and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parkway Acquisition position performs unexpectedly, Citizens Financial 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 Financial will offset losses from the drop in Citizens Financial's long position.| Parkway Acquisition vs. First Bankers Trustshares | Parkway Acquisition vs. Greenville Federal Financial | Parkway Acquisition vs. First Ottawa Bancshares | Parkway Acquisition vs. Coastal Carolina Bancshares |
| Citizens Financial vs. Century Next Financial | Citizens Financial vs. Triad Business Bank | Citizens Financial vs. First Ottawa Bancshares | Citizens Financial vs. First Community Financial |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |