Correlation Between Citizens Financial and Mission Bancorp
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Mission 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 Citizens Financial and Mission Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Financial Group and Mission Bancorp, you can compare the effects of market volatilities on Citizens Financial and Mission 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 Citizens Financial with a short position of Mission Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Mission Bancorp.
Diversification Opportunities for Citizens Financial and Mission Bancorp
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citizens and Mission is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group and Mission Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mission Bancorp and Citizens 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 Citizens Financial Group are associated (or correlated) with Mission Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mission Bancorp has no effect on the direction of Citizens Financial i.e., Citizens Financial and Mission Bancorp go up and down completely randomly.
Pair Corralation between Citizens Financial and Mission Bancorp
If you would invest 2,115 in Citizens Financial Group on September 2, 2024 and sell it today you would earn a total of 24.00 from holding Citizens Financial Group or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citizens Financial Group vs. Mission Bancorp
Performance |
| Timeline |
| Citizens Financial |
| Mission Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citizens Financial and Mission Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and Mission Bancorp
The main advantage of trading using opposite Citizens Financial and Mission Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Mission 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 Mission Bancorp will offset losses from the drop in Mission Bancorp's long position.| Citizens Financial vs. KeyCorp | Citizens Financial vs. KeyCorp | Citizens Financial vs. Fifth Third Bancorp | Citizens Financial vs. Regions Financial |
| Mission Bancorp vs. MNB Holdings Corp | Mission Bancorp vs. Harbor Bankshares | Mission Bancorp vs. Oconee Financial | Mission Bancorp vs. Mission Valley Bancorp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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