Correlation Between Ashford and Citizens Community

Can any of the company-specific risk be diversified away by investing in both Ashford and Citizens Community 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 Ashford and Citizens Community into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ashford and Citizens Community Bancorp, you can compare the effects of market volatilities on Ashford and Citizens Community 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 Ashford with a short position of Citizens Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford and Citizens Community.

Diversification Opportunities for Ashford and Citizens Community

0.0

Correlation Coefficient

Ashford  Citizens Community

Pay attention - limited upside

The 3 months correlation between Ashford and Citizens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ashford and Citizens Community Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Community and Ashford 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 Ashford are associated (or correlated) with Citizens Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Community has no effect on the direction of Ashford i.e., Ashford and Citizens Community go up and down completely randomly.

Pair Corralation between Ashford and Citizens Community

If you would invest (100.00) in Ashford on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Ashford 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

Ashford  vs.  Citizens Community Bancorp

Ashford

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ashford has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Ashford is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Citizens Community

Risk-Adjusted Performance

Very Weak

Over the last 90 days Citizens Community Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Ashford and Citizens Community

The main advantage of trading using opposite Ashford and Citizens Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford position performs unexpectedly, Citizens Community 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 Community will offset losses from the drop in Citizens Community's long position.

The idea behind Ashford and Citizens Community Bancorp 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.