Correlation Between Citizens Financial and Paramount Global

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

Diversification Opportunities for Citizens Financial and Paramount Global

0.43

Correlation Coefficient

Citizens Financial  Paramount Global

Very weak diversification

The 3 months correlation between Citizens and Paramount is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group, and Paramount Global Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paramount Global Class 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 Paramount Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paramount Global Class has no effect on the direction of Citizens Financial i.e., Citizens Financial and Paramount Global go up and down completely randomly.

Pair Corralation between Citizens Financial and Paramount Global

If you would invest  4,651  in Citizens Financial Group, on August 6, 2025 and sell it today you would earn a total of  450.00  from holding Citizens Financial Group, or generate 9.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	3.17%
Values	Daily Returns

Citizens Financial Group,  vs.  Paramount Global Class

Citizens Financial Group,

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Citizens Financial Group, are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Citizens Financial may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Paramount Global Class

Risk-Adjusted Performance

Weakest

Over the last 90 days Paramount Global Class has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Paramount Global is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citizens Financial and Paramount Global

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

The idea behind Citizens Financial Group, and Paramount Global Class 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.