Correlation Between U I and Citizens Bancshares
Can any of the company-specific risk be diversified away by investing in both U I and Citizens Bancshares 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 U I and Citizens Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U I Financial and Citizens Bancshares Corp, you can compare the effects of market volatilities on U I and Citizens Bancshares 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 U I with a short position of Citizens Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of U I and Citizens Bancshares.
Diversification Opportunities for U I and Citizens Bancshares
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between UNIF and Citizens is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding U I Financial and Citizens Bancshares Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Bancshares Corp and U I 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 U I Financial are associated (or correlated) with Citizens Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Bancshares Corp has no effect on the direction of U I i.e., U I and Citizens Bancshares go up and down completely randomly.
Pair Corralation between U I and Citizens Bancshares
Given the investment horizon of 90 days U I Financial is expected to under-perform the Citizens Bancshares. But the otc stock apears to be less risky and, when comparing its historical volatility, U I Financial is 1.18 times less risky than Citizens Bancshares. The otc stock trades about -0.47 of its potential returns per unit of risk. The Citizens Bancshares Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,280 in Citizens Bancshares Corp on August 28, 2024 and sell it today you would earn a total of 180.00 from holding Citizens Bancshares Corp or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U I Financial vs. Citizens Bancshares Corp
Performance |
| Timeline |
| U I Financial |
| Citizens Bancshares Corp |
U I and Citizens Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U I and Citizens Bancshares
The main advantage of trading using opposite U I and Citizens Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U I position performs unexpectedly, Citizens Bancshares 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 Bancshares will offset losses from the drop in Citizens Bancshares' long position.| U I vs. CIB Marine Bancshares | U I vs. Heartland Banccorp | U I vs. United Bancorporation of | U I vs. Harbor Bankshares |
| Citizens Bancshares vs. Harbor Bankshares | Citizens Bancshares vs. BankFirst Capital | Citizens Bancshares vs. Security Federal | Citizens Bancshares vs. MF 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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