Correlation Between Grupo Financiero and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both Grupo Financiero 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 Grupo Financiero and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Financiero Galicia and Citizens Financial Group, you can compare the effects of market volatilities on Grupo Financiero 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 Grupo Financiero with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Citizens Financial.
Diversification Opportunities for Grupo Financiero and Citizens Financial
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and Citizens is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Galicia and Citizens Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Financial and Grupo Financiero 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 Grupo Financiero Galicia 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 Grupo Financiero i.e., Grupo Financiero and Citizens Financial go up and down completely randomly.
Pair Corralation between Grupo Financiero and Citizens Financial
Given the investment horizon of 90 days Grupo Financiero Galicia is expected to generate 3.64 times more return on investment than Citizens Financial. However, Grupo Financiero is 3.64 times more volatile than Citizens Financial Group. It trades about 0.18 of its potential returns per unit of risk. Citizens Financial Group is currently generating about 0.1 per unit of risk. If you would invest 2,858 in Grupo Financiero Galicia on October 6, 2025 and sell it today you would earn a total of 2,477 from holding Grupo Financiero Galicia or generate 86.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Financiero Galicia vs. Citizens Financial Group
Performance |
| Timeline |
| Grupo Financiero Galicia |
| Citizens Financial |
Grupo Financiero and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Citizens Financial
The main advantage of trading using opposite Grupo Financiero and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero 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.| Grupo Financiero vs. Webster Financial | Grupo Financiero vs. First Horizon National | Grupo Financiero vs. Comerica Incorporated | Grupo Financiero vs. SouthState |
| Citizens Financial vs. PNC Financial Services | Citizens Financial vs. Regions Financial | Citizens Financial vs. Fifth Third Bancorp | Citizens Financial vs. Comerica Incorporated |
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 Stocks Directory module to find actively traded stocks across global markets.
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