Correlation Between John B and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both John B 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 John B and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John B Sanfilippo and Citizens Financial Group,, you can compare the effects of market volatilities on John B 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 John B with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of John B and Citizens Financial.
Diversification Opportunities for John B and Citizens Financial
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between John and Citizens is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding John B Sanfilippo 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 John B 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 John B Sanfilippo 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 John B i.e., John B and Citizens Financial go up and down completely randomly.
Pair Corralation between John B and Citizens Financial
Given the investment horizon of 90 days John B Sanfilippo is expected to under-perform the Citizens Financial. In addition to that, John B is 3.48 times more volatile than Citizens Financial Group,. It trades about -0.28 of its total potential returns per unit of risk. Citizens Financial Group, is currently generating about 0.05 per unit of volatility. If you would invest 2,642 in Citizens Financial Group, on November 5, 2024 and sell it today you would earn a total of 20.00 from holding Citizens Financial Group, or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John B Sanfilippo vs. Citizens Financial Group,
Performance |
| Timeline |
| John B Sanfilippo |
| Citizens Financial Group, |
John B and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John B and Citizens Financial
The main advantage of trading using opposite John B and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John B 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.| John B vs. Lancaster Colony | John B vs. Treehouse Foods | John B vs. Seneca Foods Corp | John B vs. J J Snack |
| Citizens Financial vs. Axos Financial | Citizens Financial vs. Byline Bancorp | Citizens Financial vs. KB Financial Group | Citizens Financial vs. Nu Holdings |
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.
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