Correlation Between Citizens Financial and Pacific Premier
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Pacific Premier 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 Pacific Premier 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 Pacific Premier Bancorp, you can compare the effects of market volatilities on Citizens Financial and Pacific Premier 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 Pacific Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Pacific Premier.
Diversification Opportunities for Citizens Financial and Pacific Premier
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citizens and Pacific is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group and Pacific Premier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Premier 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 Pacific Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Premier Bancorp has no effect on the direction of Citizens Financial i.e., Citizens Financial and Pacific Premier go up and down completely randomly.
Pair Corralation between Citizens Financial and Pacific Premier
Assuming the 90 days trading horizon Citizens Financial Group is expected to under-perform the Pacific Premier. But the preferred stock apears to be less risky and, when comparing its historical volatility, Citizens Financial Group is 3.69 times less risky than Pacific Premier. The preferred stock trades about -0.15 of its potential returns per unit of risk. The Pacific Premier Bancorp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,585 in Pacific Premier Bancorp on August 27, 2024 and sell it today you would earn a total of 326.00 from holding Pacific Premier Bancorp or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Financial Group vs. Pacific Premier Bancorp
Performance |
| Timeline |
| Citizens Financial |
| Pacific Premier Bancorp |
Citizens Financial and Pacific Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and Pacific Premier
The main advantage of trading using opposite Citizens Financial and Pacific Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Pacific Premier 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 Pacific Premier will offset losses from the drop in Pacific Premier's long position.| Citizens Financial vs. Capital One Financial | Citizens Financial vs. Capital One Financial | Citizens Financial vs. Bank of America |
| Pacific Premier vs. Community West Bancshares | Pacific Premier vs. Heritage Financial | Pacific Premier vs. First Financial Northwest | Pacific Premier vs. Sierra 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |