Correlation Between Freeport and Citizens Bancorp
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By analyzing existing cross correlation between Freeport McMoRan 5 percent and Citizens Bancorp Investment, you can compare the effects of market volatilities on Freeport 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 Freeport with a short position of Citizens Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freeport and Citizens Bancorp.
Diversification Opportunities for Freeport and Citizens Bancorp
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Freeport and Citizens is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Freeport McMoRan 5 percent 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 Freeport 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 Freeport McMoRan 5 percent 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 Freeport i.e., Freeport and Citizens Bancorp go up and down completely randomly.
Pair Corralation between Freeport and Citizens Bancorp
Assuming the 90 days trading horizon Freeport McMoRan 5 percent is expected to under-perform the Citizens Bancorp. But the bond apears to be less risky and, when comparing its historical volatility, Freeport McMoRan 5 percent is 1.16 times less risky than Citizens Bancorp. The bond trades about -0.23 of its potential returns per unit of risk. The Citizens Bancorp Investment is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,500 in Citizens Bancorp Investment on September 25, 2024 and sell it today you would earn a total of 55.00 from holding Citizens Bancorp Investment or generate 2.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Freeport McMoRan 5 percent vs. Citizens Bancorp Investment
Performance |
Timeline |
Freeport McMoRan 5 |
Citizens Bancorp Inv |
Freeport and Citizens Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Freeport and Citizens Bancorp
The main advantage of trading using opposite Freeport and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freeport 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.Freeport vs. Playtech plc | Freeport vs. MACOM Technology Solutions | Freeport vs. KLA Tencor | Freeport vs. BRP Inc |
Citizens Bancorp vs. Banco Bradesco SA | Citizens Bancorp vs. Itau Unibanco Banco | Citizens Bancorp vs. Lloyds Banking Group | Citizens Bancorp vs. Deutsche Bank AG |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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