Correlation Between Citizens Financial and Globe Life
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and Globe Life 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 Globe Life 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 Globe Life, you can compare the effects of market volatilities on Citizens Financial and Globe Life 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 Globe Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and Globe Life.
Diversification Opportunities for Citizens Financial and Globe Life
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citizens and Globe is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group, and Globe Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Life 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 Globe Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Life has no effect on the direction of Citizens Financial i.e., Citizens Financial and Globe Life go up and down completely randomly.
Pair Corralation between Citizens Financial and Globe Life
Considering the 90-day investment horizon Citizens Financial Group, is expected to generate 1.46 times more return on investment than Globe Life. However, Citizens Financial is 1.46 times more volatile than Globe Life. It trades about 0.08 of its potential returns per unit of risk. Globe Life is currently generating about -0.04 per unit of risk. If you would invest 4,811 in Citizens Financial Group, on August 17, 2025 and sell it today you would earn a total of 360.00 from holding Citizens Financial Group, or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Financial Group, vs. Globe Life
Performance |
| Timeline |
| Citizens Financial Group, |
| Globe Life |
Citizens Financial and Globe Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and Globe Life
The main advantage of trading using opposite Citizens Financial and Globe Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, Globe Life 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 Globe Life will offset losses from the drop in Globe Life's long position.| Citizens Financial vs. PNC Financial Services | Citizens Financial vs. Regions Financial | Citizens Financial vs. Fifth Third Bancorp | Citizens Financial vs. Comerica Incorporated |
| Globe Life vs. Unum Group | Globe Life vs. Primerica | Globe Life vs. Assurant | Globe Life vs. Lincoln National |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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