Correlation Between UMB Financial and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both UMB Financial 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 UMB Financial and Citizens Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UMB Financial and Citizens Financial Group,, you can compare the effects of market volatilities on UMB Financial 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 UMB Financial with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of UMB Financial and Citizens Financial.
Diversification Opportunities for UMB Financial and Citizens Financial
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UMB and Citizens is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding UMB Financial 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 UMB 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 UMB Financial 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 UMB Financial i.e., UMB Financial and Citizens Financial go up and down completely randomly.
Pair Corralation between UMB Financial and Citizens Financial
Given the investment horizon of 90 days UMB Financial is expected to under-perform the Citizens Financial. In addition to that, UMB Financial is 1.05 times more volatile than Citizens Financial Group,. It trades about -0.05 of its total potential returns per unit of risk. Citizens Financial Group, is currently generating about 0.03 per unit of volatility. If you would invest 4,837 in Citizens Financial Group, on August 20, 2025 and sell it today you would earn a total of 134.00 from holding Citizens Financial Group, or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UMB Financial vs. Citizens Financial Group,
Performance |
| Timeline |
| UMB Financial |
| Citizens Financial Group, |
UMB Financial and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UMB Financial and Citizens Financial
The main advantage of trading using opposite UMB Financial and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UMB Financial 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.| UMB Financial vs. Old National Bancorp | UMB Financial vs. CullenFrost Bankers | UMB Financial vs. Wintrust Financial | UMB Financial vs. Western Alliance Bancorporation |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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