Correlation Between CSP and Citizens Community

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

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

Diversification Opportunities for CSP and Citizens Community

0.46

Correlation Coefficient

CSP  Citizens Community

Very weak diversification

The 3 months correlation between CSP and Citizens is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CSP Inc and Citizens Community Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Community and CSP 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 CSP Inc are associated (or correlated) with Citizens Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Community has no effect on the direction of CSP i.e., CSP and Citizens Community go up and down completely randomly.

Pair Corralation between CSP and Citizens Community

Given the investment horizon of 90 days CSP Inc is expected to under-perform the Citizens Community. In addition to that, CSP is 2.51 times more volatile than Citizens Community Bancorp. It trades about -0.13 of its total potential returns per unit of risk. Citizens Community Bancorp is currently generating about 0.0 per unit of volatility. If you would invest  1,482  in Citizens Community Bancorp on April 30, 2025 and sell it today you would lose (5.00) from holding Citizens Community Bancorp or give up 0.34% of portfolio value over 90 days.

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

CSP Inc  vs.  Citizens Community Bancorp

CSP Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 fairly strong basic indicators, Citizens Community is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with CSP and Citizens Community

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

The idea behind CSP Inc and Citizens Community Bancorp 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 CEOs Directory module to screen CEOs from public companies around the world.