Correlation Between Citizens Financial and Southside Bancshares,

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

Diversification Opportunities for Citizens Financial and Southside Bancshares,

-0.44

Correlation Coefficient

Citizens Financial  Southside Bancshares,

Very good diversification

The 3 months correlation between Citizens and Southside is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group and Southside Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southside 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 Southside Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southside Bancshares, has no effect on the direction of Citizens Financial i.e., Citizens Financial and Southside Bancshares, go up and down completely randomly.

Pair Corralation between Citizens Financial and Southside Bancshares,

Assuming the 90 days trading horizon Citizens Financial Group is expected to under-perform the Southside Bancshares,. But the preferred stock apears to be less risky and, when comparing its historical volatility, Citizens Financial Group is 2.25 times less risky than Southside Bancshares,. The preferred stock trades about -0.06 of its potential returns per unit of risk. The Southside Bancshares, is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,328  in Southside Bancshares, on September 5, 2024 and sell it today you would earn a total of  169.00  from holding Southside Bancshares, or generate 5.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Citizens Financial Group  vs.  Southside 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 rather sound technical and fundamental indicators, Citizens Financial is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Southside Bancshares,

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Southside Bancshares, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Southside Bancshares, may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Citizens Financial and Southside Bancshares,

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

The idea behind Citizens Financial Group and Southside 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.