Correlation Between Citizens Financial and Citizens National
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Citizens National 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 National 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 National Bancshares, you can compare the effects of market volatilities on Citizens Financial and Citizens National 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 National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Citizens National.
Diversification Opportunities for Citizens Financial and Citizens National
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citizens and Citizens is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group, and Citizens National Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens National 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 National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens National has no effect on the direction of Citizens Financial i.e., Citizens Financial and Citizens National go up and down completely randomly.
Pair Corralation between Citizens Financial and Citizens National
If you would invest 1,725 in Citizens National Bancshares on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Citizens National Bancshares or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Financial Group, vs. Citizens National Bancshares
Performance |
| Timeline |
| Citizens Financial Group, |
| Citizens National |
Citizens Financial and Citizens National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and Citizens National
The main advantage of trading using opposite Citizens Financial and Citizens National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Citizens National 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 National will offset losses from the drop in Citizens National's long position.| Citizens Financial vs. PNC Financial Services | Citizens Financial vs. Regions Financial | Citizens Financial vs. Fifth Third Bancorp | Citizens Financial vs. Comerica |
| Citizens National vs. PNC Financial Services | Citizens National vs. Citizens Financial Group, | Citizens National vs. Regions Financial | Citizens National vs. Fifth Third 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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