Correlation Between Triumph Financial and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both Triumph Financial 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 Triumph Financial and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triumph Financial and Citizens Financial Group,, you can compare the effects of market volatilities on Triumph Financial 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 Triumph Financial with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph Financial and Citizens Financial.
Diversification Opportunities for Triumph Financial and Citizens Financial
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Triumph and Citizens is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Financial 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 Triumph 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 Triumph Financial 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 Triumph Financial i.e., Triumph Financial and Citizens Financial go up and down completely randomly.
Pair Corralation between Triumph Financial and Citizens Financial
Assuming the 90 days horizon Triumph Financial is expected to generate 2.49 times more return on investment than Citizens Financial. However, Triumph Financial is 2.49 times more volatile than Citizens Financial Group,. It trades about 0.1 of its potential returns per unit of risk. Citizens Financial Group, is currently generating about 0.17 per unit of risk. If you would invest 1,795 in Triumph Financial on August 27, 2024 and sell it today you would earn a total of 535.00 from holding Triumph Financial or generate 29.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 53.63% |
| Values | Daily Returns |
Triumph Financial vs. Citizens Financial Group,
Performance |
| Timeline |
| Triumph Financial |
| Citizens Financial Group, |
Triumph Financial and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triumph Financial and Citizens Financial
The main advantage of trading using opposite Triumph Financial and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph Financial 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.| Triumph Financial vs. Triumph Financial | Triumph Financial vs. Wintrust Financial Corp | Triumph Financial vs. First Merchants | Triumph Financial vs. Pinnacle Financial Partners |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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