Correlation Between Intuitive Machines and Citizens Bancorp

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

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

Diversification Opportunities for Intuitive Machines and Citizens Bancorp

0.6

Correlation Coefficient

Intuitive Machines  Citizens Bancorp

Poor diversification

The 3 months correlation between Intuitive and Citizens is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Citizens Bancorp Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Bancorp Inv and Intuitive Machines 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 Intuitive Machines are associated (or correlated) with Citizens Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Bancorp Inv has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Citizens Bancorp go up and down completely randomly.

Pair Corralation between Intuitive Machines and Citizens Bancorp

Assuming the 90 days horizon Intuitive Machines is expected to under-perform the Citizens Bancorp. In addition to that, Intuitive Machines is 11.87 times more volatile than Citizens Bancorp Investment. It trades about -0.15 of its total potential returns per unit of risk. Citizens Bancorp Investment is currently generating about 0.06 per unit of volatility. If you would invest  2,684  in Citizens Bancorp Investment on December 30, 2024 and sell it today you would earn a total of  165.00  from holding Citizens Bancorp Investment or generate 6.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	73.02%
Values	Daily Returns

Intuitive Machines  vs.  Citizens Bancorp Investment

Intuitive Machines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intuitive Machines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Citizens Bancorp Inv

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Citizens Bancorp Investment are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Citizens Bancorp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Intuitive Machines and Citizens Bancorp

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

The idea behind Intuitive Machines and Citizens Bancorp Investment 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.