Correlation Between Citizens Financial and Pinnacle Bancshares
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Pinnacle Bancshares 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 Pinnacle Bancshares 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 Pinnacle Bancshares, you can compare the effects of market volatilities on Citizens Financial and Pinnacle Bancshares 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 Pinnacle Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Pinnacle Bancshares.
Diversification Opportunities for Citizens Financial and Pinnacle Bancshares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citizens and Pinnacle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group and Pinnacle Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinnacle Bancshares 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 Pinnacle Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinnacle Bancshares has no effect on the direction of Citizens Financial i.e., Citizens Financial and Pinnacle Bancshares go up and down completely randomly.
Pair Corralation between Citizens Financial and Pinnacle Bancshares
If you would invest 1,709 in Citizens Financial Group on December 4, 2024 and sell it today you would earn a total of 316.00 from holding Citizens Financial Group or generate 18.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citizens Financial Group vs. Pinnacle Bancshares
Performance |
| Timeline |
| Citizens Financial |
| Pinnacle Bancshares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citizens Financial and Pinnacle Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and Pinnacle Bancshares
The main advantage of trading using opposite Citizens Financial and Pinnacle Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Pinnacle Bancshares 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 Pinnacle Bancshares will offset losses from the drop in Pinnacle Bancshares' long position.| Citizens Financial vs. Capital One Financial | ||
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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