Correlation Between Citizens Financial and Guaranty Bancshares,

Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Guaranty Bancshares, 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 Guaranty Bancshares, 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 Guaranty Bancshares,, you can compare the effects of market volatilities on Citizens Financial and Guaranty Bancshares, 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 Guaranty Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Guaranty Bancshares,.

Diversification Opportunities for Citizens Financial and Guaranty Bancshares,

-0.63

Correlation Coefficient

Citizens Financial  Guaranty Bancshares,

Excellent diversification

The 3 months correlation between Citizens and Guaranty is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group and Guaranty Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guaranty Bancshares, 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 Guaranty Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guaranty Bancshares, has no effect on the direction of Citizens Financial i.e., Citizens Financial and Guaranty Bancshares, go up and down completely randomly.

Pair Corralation between Citizens Financial and Guaranty Bancshares,

Assuming the 90 days trading horizon Citizens Financial is expected to generate 5.17 times less return on investment than Guaranty Bancshares,. But when comparing it to its historical volatility, Citizens Financial Group is 2.41 times less risky than Guaranty Bancshares,. It trades about 0.04 of its potential returns per unit of risk. Guaranty Bancshares, is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,904  in Guaranty Bancshares, on September 19, 2024 and sell it today you would earn a total of  759.00  from holding Guaranty Bancshares, or generate 26.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.21%
Values	Daily Returns

Citizens Financial Group  vs.  Guaranty Bancshares,

Citizens Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Citizens Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Preferred Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Guaranty Bancshares,

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Guaranty Bancshares, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Guaranty Bancshares, is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citizens Financial and Guaranty Bancshares,

The main advantage of trading using opposite Citizens Financial and Guaranty Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Guaranty Bancshares, 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 Guaranty Bancshares, will offset losses from the drop in Guaranty Bancshares,'s long position.

The idea behind Citizens Financial Group and Guaranty Bancshares, 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.