Correlation Between Alchemy Investments and Citizens Bancorp

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

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

Diversification Opportunities for Alchemy Investments and Citizens Bancorp

-0.14

Correlation Coefficient

Alchemy Investments  Citizens Bancorp

Good diversification

The 3 months correlation between Alchemy and Citizens is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Alchemy Investments Acquisitio 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 Alchemy Investments 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 Alchemy Investments Acquisition 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 Alchemy Investments i.e., Alchemy Investments and Citizens Bancorp go up and down completely randomly.

Pair Corralation between Alchemy Investments and Citizens Bancorp

Given the investment horizon of 90 days Alchemy Investments is expected to generate 8.14 times less return on investment than Citizens Bancorp. In addition to that, Alchemy Investments is 1.65 times more volatile than Citizens Bancorp Investment. It trades about 0.03 of its total potential returns per unit of risk. Citizens Bancorp Investment is currently generating about 0.42 per unit of volatility. If you would invest  2,200  in Citizens Bancorp Investment on September 12, 2024 and sell it today you would earn a total of  355.00  from holding Citizens Bancorp Investment or generate 16.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Alchemy Investments Acquisitio  vs.  Citizens Bancorp Investment

Alchemy Investments

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alchemy Investments Acquisition are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental indicators, Alchemy Investments is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Citizens Bancorp Inv

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Citizens Bancorp Investment are ranked lower than 5 (%) 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 January 2025.

Pair Trading with Alchemy Investments and Citizens Bancorp

The main advantage of trading using opposite Alchemy Investments and Citizens Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alchemy Investments 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 Alchemy Investments Acquisition 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.