Correlation Between Upper Street and Citizens Financial

Can any of the company-specific risk be diversified away by investing in both Upper Street 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 Upper Street and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Upper Street Marketing and Citizens Financial Group,, you can compare the effects of market volatilities on Upper Street 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 Upper Street with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upper Street and Citizens Financial.

Diversification Opportunities for Upper Street and Citizens Financial

0.0

Correlation Coefficient

Upper Street  Citizens Financial

Pay attention - limited upside

The 3 months correlation between Upper and Citizens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Upper Street Marketing 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 Upper Street 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 Upper Street Marketing 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 Upper Street i.e., Upper Street and Citizens Financial go up and down completely randomly.

Pair Corralation between Upper Street and Citizens Financial

If you would invest  2,710  in Citizens Financial Group, on September 1, 2024 and sell it today you would earn a total of  18.00  from holding Citizens Financial Group, or generate 0.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Upper Street Marketing  vs.  Citizens Financial Group,

Upper Street Marketing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Upper Street Marketing has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Upper Street is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Citizens Financial Group,

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citizens Financial Group, are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical and fundamental indicators, Citizens Financial is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Upper Street and Citizens Financial

The main advantage of trading using opposite Upper Street and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upper Street 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 Upper Street Marketing and Citizens Financial Group, 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.