Correlation Between Westbury Bancorp and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both Westbury Bancorp 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 Westbury Bancorp and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westbury Bancorp and Citizens Financial Services, you can compare the effects of market volatilities on Westbury Bancorp 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 Westbury Bancorp with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westbury Bancorp and Citizens Financial.
Diversification Opportunities for Westbury Bancorp and Citizens Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westbury and Citizens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Westbury Bancorp and Citizens Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Financial and Westbury 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 Westbury Bancorp 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 has no effect on the direction of Westbury Bancorp i.e., Westbury Bancorp and Citizens Financial go up and down completely randomly.
Pair Corralation between Westbury Bancorp and Citizens Financial
If you would invest (100.00) in Westbury Bancorp on December 1, 2024 and sell it today you would earn a total of 100.00 from holding Westbury Bancorp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Westbury Bancorp vs. Citizens Financial Services
Performance |
| Timeline |
| Westbury Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Citizens Financial |
Westbury Bancorp and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westbury Bancorp and Citizens Financial
The main advantage of trading using opposite Westbury Bancorp and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westbury Bancorp 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.| Westbury Bancorp vs. Home Federal Bancorp | Westbury Bancorp vs. First Northwest Bancorp | Westbury Bancorp vs. First Community | Westbury Bancorp vs. Oak Valley Bancorp |
| Citizens Financial vs. Home Federal Bancorp | Citizens Financial vs. Community West Bancshares | Citizens Financial vs. Magyar Bancorp | Citizens Financial vs. Finward 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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