Correlation Between Citizens Financial and FineMark Holdings
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and FineMark Holdings 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 FineMark Holdings 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 FineMark Holdings, you can compare the effects of market volatilities on Citizens Financial and FineMark Holdings 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 FineMark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and FineMark Holdings.
Diversification Opportunities for Citizens Financial and FineMark Holdings
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citizens and FineMark is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group, and FineMark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FineMark Holdings 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 FineMark Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FineMark Holdings has no effect on the direction of Citizens Financial i.e., Citizens Financial and FineMark Holdings go up and down completely randomly.
Pair Corralation between Citizens Financial and FineMark Holdings
Considering the 90-day investment horizon Citizens Financial Group, is expected to generate 2.46 times more return on investment than FineMark Holdings. However, Citizens Financial is 2.46 times more volatile than FineMark Holdings. It trades about 0.05 of its potential returns per unit of risk. FineMark Holdings is currently generating about -0.02 per unit of risk. If you would invest 2,855 in Citizens Financial Group, on December 4, 2024 and sell it today you would earn a total of 1,650 from holding Citizens Financial Group, or generate 57.79% 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. FineMark Holdings
Performance |
| Timeline |
| Citizens Financial Group, |
| FineMark Holdings |
Citizens Financial and FineMark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and FineMark Holdings
The main advantage of trading using opposite Citizens Financial and FineMark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, FineMark Holdings 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 FineMark Holdings will offset losses from the drop in FineMark Holdings' long position.| Citizens Financial vs. PNC Financial Services | ||
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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