Correlation Between Partners Bancorp and Citizens Holding
Can any of the company-specific risk be diversified away by investing in both Partners Bancorp and Citizens Holding 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 Partners Bancorp and Citizens Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Partners Bancorp and Citizens Holding, you can compare the effects of market volatilities on Partners Bancorp and Citizens Holding 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 Partners Bancorp with a short position of Citizens Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Partners Bancorp and Citizens Holding.
Diversification Opportunities for Partners Bancorp and Citizens Holding
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Partners and Citizens is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Partners Bancorp and Citizens Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Holding and Partners Bancorp 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 Partners Bancorp are associated (or correlated) with Citizens Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Holding has no effect on the direction of Partners Bancorp i.e., Partners Bancorp and Citizens Holding go up and down completely randomly.
Pair Corralation between Partners Bancorp and Citizens Holding
If you would invest 1,195 in Citizens Holding on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Citizens Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Partners Bancorp vs. Citizens Holding
Performance |
| Timeline |
| Partners Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Citizens Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Partners Bancorp and Citizens Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Partners Bancorp and Citizens Holding
The main advantage of trading using opposite Partners Bancorp and Citizens Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Partners Bancorp position performs unexpectedly, Citizens Holding 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 Holding will offset losses from the drop in Citizens Holding's long position.| Partners Bancorp vs. Home Federal Bancorp | Partners Bancorp vs. Magyar Bancorp | Partners Bancorp vs. Community West Bancshares | Partners Bancorp vs. Lake Shore Bancorp |
| Citizens Holding vs. Home Federal Bancorp | Citizens Holding vs. Lake Shore Bancorp | Citizens Holding vs. Community West Bancshares | Citizens Holding vs. Magyar Bancorp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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