Correlation Between SNDL and Citizens Bancorp
Can any of the company-specific risk be diversified away by investing in both SNDL 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 SNDL and Citizens Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNDL Inc and Citizens Bancorp Investment, you can compare the effects of market volatilities on SNDL 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 SNDL with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and Citizens Bancorp.
Diversification Opportunities for SNDL and Citizens Bancorp
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between SNDL and Citizens is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc 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 SNDL 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 SNDL Inc 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 SNDL i.e., SNDL and Citizens Bancorp go up and down completely randomly.
Pair Corralation between SNDL and Citizens Bancorp
Given the investment horizon of 90 days SNDL Inc is expected to under-perform the Citizens Bancorp. In addition to that, SNDL is 1.66 times more volatile than Citizens Bancorp Investment. It trades about -0.08 of its total potential returns per unit of risk. Citizens Bancorp Investment is currently generating about 0.09 per unit of volatility. If you would invest 2,400 in Citizens Bancorp Investment on August 31, 2024 and sell it today you would earn a total of 100.00 from holding Citizens Bancorp Investment or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SNDL Inc vs. Citizens Bancorp Investment
Performance |
| Timeline |
| SNDL Inc |
| Citizens Bancorp Inv |
SNDL and Citizens Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and Citizens Bancorp
The main advantage of trading using opposite SNDL and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL 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 SNDL Inc and Citizens Bancorp Investment 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. 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |