Correlation Between G III and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both G III and Citizens Financial 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 G III and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G III Apparel Group and Citizens Financial Group,, you can compare the effects of market volatilities on G III and Citizens Financial 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 G III with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of G III and Citizens Financial.
Diversification Opportunities for G III and Citizens Financial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GIII and Citizens is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and Citizens Financial Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Financial Group, and G III 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 G III Apparel Group are associated (or correlated) with Citizens Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Financial Group, has no effect on the direction of G III i.e., G III and Citizens Financial go up and down completely randomly.
Pair Corralation between G III and Citizens Financial
Given the investment horizon of 90 days G III Apparel Group is expected to generate 6.01 times more return on investment than Citizens Financial. However, G III is 6.01 times more volatile than Citizens Financial Group,. It trades about 0.06 of its potential returns per unit of risk. Citizens Financial Group, is currently generating about 0.08 per unit of risk. If you would invest 1,620 in G III Apparel Group on October 13, 2024 and sell it today you would earn a total of 1,520 from holding G III Apparel Group or generate 93.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.06% |
| Values | Daily Returns |
G III Apparel Group vs. Citizens Financial Group,
Performance |
| Timeline |
| G III Apparel |
| Citizens Financial Group, |
G III and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G III and Citizens Financial
The main advantage of trading using opposite G III and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G III position performs unexpectedly, Citizens Financial 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 Financial will offset losses from the drop in Citizens Financial's long position.| G III vs. Oxford Industries | G III vs. Ermenegildo Zegna NV | G III vs. Kontoor Brands | G III vs. Columbia Sportswear |
| Citizens Financial vs. G III Apparel Group | Citizens Financial vs. Zumiez Inc | Citizens Financial vs. Chiba Bank Ltd | Citizens Financial vs. Glacier 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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