Correlation Between Citizens Bancorp and SNDL

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

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

Diversification Opportunities for Citizens Bancorp and SNDL

-0.35

Correlation Coefficient

Citizens Bancorp  SNDL

Very good diversification

The 3 months correlation between Citizens and SNDL is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Bancorp Investment and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc and Citizens 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 Citizens Bancorp Investment are associated (or correlated) with SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of Citizens Bancorp i.e., Citizens Bancorp and SNDL go up and down completely randomly.

Pair Corralation between Citizens Bancorp and SNDL

Given the investment horizon of 90 days Citizens Bancorp Investment is expected to generate 0.58 times more return on investment than SNDL. However, Citizens Bancorp Investment is 1.73 times less risky than SNDL. It trades about 0.15 of its potential returns per unit of risk. SNDL Inc is currently generating about -0.07 per unit of risk. If you would invest  2,538  in Citizens Bancorp Investment on December 20, 2024 and sell it today you would earn a total of  362.00  from holding Citizens Bancorp Investment or generate 14.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

Citizens Bancorp Investment  vs.  SNDL Inc

Citizens Bancorp Inv

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citizens Bancorp Investment are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Citizens Bancorp displayed solid returns over the last few months and may actually be approaching a breakup point.

SNDL Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days SNDL Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Citizens Bancorp and SNDL

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

The idea behind Citizens Bancorp Investment and SNDL Inc 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..