Correlation Between Citizens Financial and Grupo Supervielle
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Grupo Supervielle 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 Grupo Supervielle 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 Grupo Supervielle SA, you can compare the effects of market volatilities on Citizens Financial and Grupo Supervielle 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 Grupo Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Grupo Supervielle.
Diversification Opportunities for Citizens Financial and Grupo Supervielle
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citizens and Grupo is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle 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 Grupo Supervielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Supervielle has no effect on the direction of Citizens Financial i.e., Citizens Financial and Grupo Supervielle go up and down completely randomly.
Pair Corralation between Citizens Financial and Grupo Supervielle
Assuming the 90 days trading horizon Citizens Financial is expected to generate 8.09 times less return on investment than Grupo Supervielle. But when comparing it to its historical volatility, Citizens Financial Group is 3.36 times less risky than Grupo Supervielle. It trades about 0.06 of its potential returns per unit of risk. Grupo Supervielle SA is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 324.00 in Grupo Supervielle SA on August 24, 2024 and sell it today you would earn a total of 746.00 from holding Grupo Supervielle SA or generate 230.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Financial Group vs. Grupo Supervielle SA
Performance |
| Timeline |
| Citizens Financial |
| Grupo Supervielle |
Citizens Financial and Grupo Supervielle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and Grupo Supervielle
The main advantage of trading using opposite Citizens Financial and Grupo Supervielle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Grupo Supervielle 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 Grupo Supervielle will offset losses from the drop in Grupo Supervielle's long position.| Citizens Financial vs. Capital One Financial | Citizens Financial vs. Capital One Financial | Citizens Financial vs. Bank of America | Citizens Financial vs. KeyCorp |
| Grupo Supervielle vs. Grupo Financiero Galicia | Grupo Supervielle vs. BBVA Banco Frances | Grupo Supervielle vs. Itau Unibanco Banco | Grupo Supervielle vs. Banco Bradesco SA |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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