Correlation Between Citizens Community and Conifer Holding

Can any of the company-specific risk be diversified away by investing in both Citizens Community and Conifer 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 Citizens Community and Conifer Holding 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 Conifer Holding, you can compare the effects of market volatilities on Citizens Community and Conifer 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 Citizens Community with a short position of Conifer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Community and Conifer Holding.

Diversification Opportunities for Citizens Community and Conifer Holding

0.77

Correlation Coefficient

Citizens Community  Conifer Holding

Poor diversification

The 3 months correlation between Citizens and Conifer is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Community Bancorp and Conifer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifer Holding 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 Conifer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifer Holding has no effect on the direction of Citizens Community i.e., Citizens Community and Conifer Holding go up and down completely randomly.

Pair Corralation between Citizens Community and Conifer Holding

Given the investment horizon of 90 days Citizens Community Bancorp is expected to generate 0.37 times more return on investment than Conifer Holding. However, Citizens Community Bancorp is 2.68 times less risky than Conifer Holding. It trades about -0.12 of its potential returns per unit of risk. Conifer Holding is currently generating about -0.19 per unit of risk. If you would invest  1,601  in Citizens Community Bancorp on December 29, 2024 and sell it today you would lose (164.00) from holding Citizens Community Bancorp or give up 10.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Citizens Community Bancorp  vs.  Conifer Holding

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.

Conifer Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Conifer Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Citizens Community and Conifer Holding

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

The idea behind Citizens Community Bancorp and Conifer Holding 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.