Correlation Between Citizens Community and Altisource Asset

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

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

Diversification Opportunities for Citizens Community and Altisource Asset

0.0

Correlation Coefficient

Citizens Community  Altisource Asset

Pay attention - limited upside

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

Pair Corralation between Citizens Community and Altisource Asset

If you would invest (100.00) in Altisource Asset Management on December 2, 2024 and sell it today you would earn a total of  100.00  from holding Altisource Asset Management 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

Citizens Community Bancorp  vs.  Altisource Asset Management

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 fairly strong basic indicators, Citizens Community is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Altisource Asset Man

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Citizens Community and Altisource Asset

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

The idea behind Citizens Community Bancorp and Altisource Asset Management 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.