Correlation Between Safe and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both Safe 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 Safe and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe and Green and Citizens Bancorp of, you can compare the effects of market volatilities on Safe 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 Safe with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe and Citizens Bancorp.
Diversification Opportunities for Safe and Citizens Bancorp
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Safe and Citizens is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Safe and Green and Citizens Bancorp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Bancorp and Safe 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 Safe and Green 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 has no effect on the direction of Safe i.e., Safe and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Safe and Citizens Bancorp
Considering the 90-day investment horizon Safe and Green is expected to under-perform the Citizens Bancorp. In addition to that, Safe is 6.63 times more volatile than Citizens Bancorp of. It trades about -0.11 of its total potential returns per unit of risk. Citizens Bancorp of is currently generating about 0.19 per unit of volatility. If you would invest 2,645 in Citizens Bancorp of on August 30, 2024 and sell it today you would earn a total of 455.00 from holding Citizens Bancorp of or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe and Green vs. Citizens Bancorp of
Performance |
| Timeline |
| Safe and Green |
| Citizens Bancorp |
Safe and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe and Citizens Bancorp
The main advantage of trading using opposite Safe and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe 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.The idea behind Safe and Green and Citizens Bancorp of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Citizens Bancorp vs. Pioneer Bankcorp | Citizens Bancorp vs. Liberty Northwest Bancorp | Citizens Bancorp vs. First Community | Citizens Bancorp vs. Coeur dAlene 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |