Correlation Between Citizens Financial and China CITIC
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and China CITIC 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 China CITIC 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 China CITIC Bank, you can compare the effects of market volatilities on Citizens Financial and China CITIC 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 China CITIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and China CITIC.
Diversification Opportunities for Citizens Financial and China CITIC
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citizens and China is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group, and China CITIC Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China CITIC 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 China CITIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China CITIC Bank has no effect on the direction of Citizens Financial i.e., Citizens Financial and China CITIC go up and down completely randomly.
Pair Corralation between Citizens Financial and China CITIC
If you would invest 4,270 in Citizens Financial Group, on August 31, 2024 and sell it today you would earn a total of 546.00 from holding Citizens Financial Group, or generate 12.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Citizens Financial Group, vs. China CITIC Bank
Performance |
| Timeline |
| Citizens Financial Group, |
| China CITIC Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citizens Financial and China CITIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and China CITIC
The main advantage of trading using opposite Citizens Financial and China CITIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, China CITIC 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 China CITIC will offset losses from the drop in China CITIC's long position.| Citizens Financial vs. PNC Financial Services | Citizens Financial vs. Regions Financial | Citizens Financial vs. Fifth Third Bancorp | Citizens Financial vs. Comerica |
| China CITIC vs. Postal Savings Bank | China CITIC vs. China Merchants Bank | China CITIC vs. China Merchants Bank | China CITIC vs. Community West Bancshares |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |