Correlation Between Citizens Community and First Savings

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

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

Diversification Opportunities for Citizens Community and First Savings

0.75

Correlation Coefficient

Citizens Community  First Savings

Poor diversification

The 3 months correlation between Citizens and First is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Community Bancorp and First Savings Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Savings Financial and Citizens Community 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 Citizens Community Bancorp are associated (or correlated) with First Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Savings Financial has no effect on the direction of Citizens Community i.e., Citizens Community and First Savings go up and down completely randomly.

Pair Corralation between Citizens Community and First Savings

Given the investment horizon of 90 days Citizens Community Bancorp is expected to generate 1.13 times more return on investment than First Savings. However, Citizens Community is 1.13 times more volatile than First Savings Financial. It trades about 0.04 of its potential returns per unit of risk. First Savings Financial is currently generating about -0.02 per unit of risk. If you would invest  1,520  in Citizens Community Bancorp on May 18, 2025 and sell it today you would earn a total of  48.00  from holding Citizens Community Bancorp or generate 3.16% return on investment over 90 days.

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

Citizens Community Bancorp  vs.  First Savings Financial

Citizens Community

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Citizens Community Bancorp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

First Savings Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days First Savings Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, First Savings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Citizens Community and First Savings

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

The idea behind Citizens Community Bancorp and First Savings Financial 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 Anywhere module to track or share privately all of your investments from the convenience of any device.