Correlation Between Citizens Financial and Signature Bank
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Signature Bank 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 Signature Bank 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 Signature Bank, you can compare the effects of market volatilities on Citizens Financial and Signature Bank 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 Signature Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Signature Bank.
Diversification Opportunities for Citizens Financial and Signature Bank
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citizens and Signature is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group, and Signature Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signature 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 Signature Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signature Bank has no effect on the direction of Citizens Financial i.e., Citizens Financial and Signature Bank go up and down completely randomly.
Pair Corralation between Citizens Financial and Signature Bank
If you would invest 1.70 in Signature Bank on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Signature Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Citizens Financial Group, vs. Signature Bank
Performance |
| Timeline |
| Citizens Financial Group, |
| Signature Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citizens Financial and Signature Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and Signature Bank
The main advantage of trading using opposite Citizens Financial and Signature Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Signature Bank 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 Signature Bank will offset losses from the drop in Signature Bank's long position.| Citizens Financial vs. Celsius Holdings | Citizens Financial vs. Modine Manufacturing | Citizens Financial vs. BRP Inc | Citizens Financial vs. Lifevantage |
| Signature Bank vs. PennantPark Floating Rate | Signature Bank vs. GMS Inc | Signature Bank vs. Stepstone Group | Signature Bank vs. Griffon |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |