Correlation Between Citizens Financial and Citizens Northern
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Citizens Northern 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 Citizens Northern 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 Citizens Northern Corp, you can compare the effects of market volatilities on Citizens Financial and Citizens Northern 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 Citizens Northern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Citizens Northern.
Diversification Opportunities for Citizens Financial and Citizens Northern
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citizens and Citizens is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group, and Citizens Northern Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Northern 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 Citizens Northern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Northern Corp has no effect on the direction of Citizens Financial i.e., Citizens Financial and Citizens Northern go up and down completely randomly.
Pair Corralation between Citizens Financial and Citizens Northern
Assuming the 90 days trading horizon Citizens Financial Group, is expected to generate 0.38 times more return on investment than Citizens Northern. However, Citizens Financial Group, is 2.62 times less risky than Citizens Northern. It trades about -0.01 of its potential returns per unit of risk. Citizens Northern Corp is currently generating about -0.21 per unit of risk. If you would invest 2,650 in Citizens Financial Group, on December 9, 2024 and sell it today you would lose (2.00) from holding Citizens Financial Group, or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Financial Group, vs. Citizens Northern Corp
Performance |
| Timeline |
| Citizens Financial Group, |
| Citizens Northern Corp |
Citizens Financial and Citizens Northern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and Citizens Northern
The main advantage of trading using opposite Citizens Financial and Citizens Northern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Citizens Northern 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 Citizens Northern will offset losses from the drop in Citizens Northern's long position.| Citizens Financial vs. Bilibili | ||
| Citizens Financial vs. Afya | ||
| Citizens Financial vs. GameStop Corp | ||
| Citizens Financial vs. Galaxy Gaming |
| Citizens Northern vs. Penns Woods Bancorp | ||
| Citizens Northern vs. Chemung Financial Corp | ||
| Citizens Northern vs. Enterprise 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |