Correlation Between Chia and Citizens Financial

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Chia 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 Chia and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia and Citizens Financial Services, you can compare the effects of market volatilities on Chia 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 Chia with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia and Citizens Financial.

Diversification Opportunities for Chia and Citizens Financial

0.51
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Chia and Citizens is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Chia and Citizens Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Financial and Chia 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 Chia 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 has no effect on the direction of Chia i.e., Chia and Citizens Financial go up and down completely randomly.

Pair Corralation between Chia and Citizens Financial

Assuming the 90 days trading horizon Chia is expected to under-perform the Citizens Financial. In addition to that, Chia is 1.89 times more volatile than Citizens Financial Services. It trades about -0.02 of its total potential returns per unit of risk. Citizens Financial Services is currently generating about 0.0 per unit of volatility. If you would invest  7,915  in Citizens Financial Services on November 2, 2024 and sell it today you would lose (1,648) from holding Citizens Financial Services or give up 20.82% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy60.32%
ValuesDaily Returns

Chia  vs.  Citizens Financial Services

 Performance 
       Timeline  
Chia 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Chia are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Chia exhibited solid returns over the last few months and may actually be approaching a breakup point.
Citizens Financial 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Citizens Financial Services are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical and fundamental indicators, Citizens Financial may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Chia and Citizens Financial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Chia and Citizens Financial

The main advantage of trading using opposite Chia and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia 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.
The idea behind Chia and Citizens Financial Services pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk