Correlation Between William Penn and Citizens Holding
Can any of the company-specific risk be diversified away by investing in both William Penn 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 William Penn and Citizens Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between William Penn Bancorp and Citizens Holding, you can compare the effects of market volatilities on William Penn 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 William Penn with a short position of Citizens Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of William Penn and Citizens Holding.
Diversification Opportunities for William Penn and Citizens Holding
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between William and Citizens is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding William Penn Bancorp and Citizens Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Holding and William Penn 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 William Penn 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 William Penn i.e., William Penn and Citizens Holding go up and down completely randomly.
Pair Corralation between William Penn and Citizens Holding
If you would invest 1,275 in William Penn Bancorp on August 28, 2024 and sell it today you would earn a total of 68.00 from holding William Penn Bancorp or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
William Penn Bancorp vs. Citizens Holding
Performance |
| Timeline |
| William Penn Bancorp |
| Citizens Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
William Penn and Citizens Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with William Penn and Citizens Holding
The main advantage of trading using opposite William Penn and Citizens Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if William Penn 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.| William Penn vs. Fifth Third Bancorp | William Penn vs. Zions Bancorporation | William Penn vs. Huntington Bancshares Incorporated | William Penn vs. Comerica |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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