Correlation Between WVS Financial and Citizens Bancorp

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

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

Diversification Opportunities for WVS Financial and Citizens Bancorp

0.0

Correlation Coefficient

WVS Financial  Citizens Bancorp

Pay attention - limited upside

The 3 months correlation between WVS and Citizens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WVS Financial Corp 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 WVS Financial 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 WVS Financial Corp 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 WVS Financial i.e., WVS Financial and Citizens Bancorp go up and down completely randomly.

Pair Corralation between WVS Financial and Citizens Bancorp

If you would invest (100.00) in WVS Financial Corp on December 1, 2024 and sell it today you would earn a total of  100.00  from holding WVS Financial Corp 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

WVS Financial Corp  vs.  Citizens Bancorp Investment

WVS Financial Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days WVS Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, WVS Financial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

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 12 (%) 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.

Pair Trading with WVS Financial and Citizens Bancorp

The main advantage of trading using opposite WVS Financial and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WVS Financial 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 WVS Financial Corp 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.