Correlation Between Citizens Financial and First Republic
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and First Republic 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 First Republic 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 First Republic Bank, you can compare the effects of market volatilities on Citizens Financial and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and First Republic.
Diversification Opportunities for Citizens Financial and First Republic
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citizens and First is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group, and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Citizens Financial i.e., Citizens Financial and First Republic go up and down completely randomly.
Pair Corralation between Citizens Financial and First Republic
If you would invest 2,467 in Citizens Financial Group, on September 1, 2024 and sell it today you would earn a total of 261.00 from holding Citizens Financial Group, or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Citizens Financial Group, vs. First Republic Bank
Performance |
| Timeline |
| Citizens Financial Group, |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citizens Financial and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and First Republic
The main advantage of trading using opposite Citizens Financial and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| Citizens Financial vs. National Beverage Corp | Citizens Financial vs. Upper Street Marketing | Citizens Financial vs. Molson Coors Brewing | Citizens Financial vs. Diageo PLC ADR |
| First Republic vs. CapitaLand Investment Limited | First Republic vs. MGIC Investment Corp | First Republic vs. SunLink Health Systems | First Republic vs. Simon Property 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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