Correlation Between Citizens Holding and Home Federal
Can any of the company-specific risk be diversified away by investing in both Citizens Holding and Home Federal 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 Citizens Holding and Home Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Holding and Home Federal Bancorp, you can compare the effects of market volatilities on Citizens Holding and Home Federal 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 Citizens Holding with a short position of Home Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Holding and Home Federal.
Diversification Opportunities for Citizens Holding and Home Federal
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citizens and Home is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Holding and Home Federal Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Federal Bancorp and Citizens Holding 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 Citizens Holding are associated (or correlated) with Home Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Federal Bancorp has no effect on the direction of Citizens Holding i.e., Citizens Holding and Home Federal go up and down completely randomly.
Pair Corralation between Citizens Holding and Home Federal
If you would invest 885.00 in Citizens Holding on March 10, 2024 and sell it today you would earn a total of 0.00 from holding Citizens Holding or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Citizens Holding vs. Home Federal Bancorp
Performance |
Timeline |
Citizens Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Home Federal Bancorp |
Citizens Holding and Home Federal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citizens Holding and Home Federal
The main advantage of trading using opposite Citizens Holding and Home Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Holding position performs unexpectedly, Home Federal 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 Home Federal will offset losses from the drop in Home Federal's long position.Citizens Holding vs. HMN Financial | Citizens Holding vs. Home Federal Bancorp | Citizens Holding vs. Lake Shore Bancorp | Citizens Holding vs. Community West Bancshares |
Home Federal vs. Great Southern Bancorp | Home Federal vs. Heritage Financial | Home Federal vs. Bankwell Financial Group | Home Federal vs. Sierra 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
CEOs Directory Screen CEOs from public companies around the world | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |