Correlation Between Citizens Financial and Wintrust Financial
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Wintrust Financial 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 Wintrust Financial 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 Wintrust Financial Corp, you can compare the effects of market volatilities on Citizens Financial and Wintrust Financial 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 Wintrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Wintrust Financial.
Diversification Opportunities for Citizens Financial and Wintrust Financial
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citizens and Wintrust is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group and Wintrust Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintrust Financial Corp 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 Wintrust Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintrust Financial Corp has no effect on the direction of Citizens Financial i.e., Citizens Financial and Wintrust Financial go up and down completely randomly.
Pair Corralation between Citizens Financial and Wintrust Financial
Assuming the 90 days trading horizon Citizens Financial Group is expected to generate 4.83 times more return on investment than Wintrust Financial. However, Citizens Financial is 4.83 times more volatile than Wintrust Financial Corp. It trades about 0.1 of its potential returns per unit of risk. Wintrust Financial Corp is currently generating about 0.19 per unit of risk. If you would invest 1,889 in Citizens Financial Group on September 1, 2024 and sell it today you would earn a total of 250.00 from holding Citizens Financial Group or generate 13.23% 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. Wintrust Financial Corp
Performance |
| Timeline |
| Citizens Financial |
| Wintrust Financial Corp |
Citizens Financial and Wintrust Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and Wintrust Financial
The main advantage of trading using opposite Citizens Financial and Wintrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Wintrust Financial 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 Wintrust Financial will offset losses from the drop in Wintrust Financial'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 |
| Wintrust Financial vs. KeyCorp | Wintrust Financial vs. KeyCorp | Wintrust Financial vs. Fifth Third Bancorp | Wintrust Financial vs. Citizens Financial Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |