Citizens Financial Group Stock Volatility
| CFG Stock | USD 32.90 0.12 0.36% |
We consider Citizens Financial very steady. Citizens Financial secures Sharpe Ratio (or Efficiency) of 0.013, which signifies that the company had a 0.013% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Citizens Financial Group, which you can use to evaluate the volatility of the firm. Please confirm Citizens Financial's Mean Deviation of 1.47, downside deviation of 1.9, and Risk Adjusted Performance of 0.0442 to double-check if the risk estimate we provide is consistent with the expected return of 0.0252%. Key indicators related to Citizens Financial's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Citizens Financial Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Citizens daily returns, and it is calculated using variance and standard deviation. We also use Citizens's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Citizens Financial volatility.
Citizens |
ESG Sustainability
While most ESG disclosures are voluntary, Citizens Financial's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Citizens Financial's managers and investors.Environment Score | Governance Score | Social Score |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Citizens Financial can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Citizens Financial at lower prices. For example, an investor can purchase Citizens stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Citizens Financial's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Citizens Stock
| 0.75 | DB | Deutsche Bank AG Earnings Call This Week | PairCorr |
| 0.94 | RF | Regions Financial Earnings Call Today | PairCorr |
Moving against Citizens Stock
| 0.47 | VBNK | VersaBank Financial Report 5th of June 2024 | PairCorr |
| 0.43 | EBTC | Enterprise Bancorp Earnings Call This Week | PairCorr |
Citizens Financial Market Sensitivity And Downside Risk
Citizens Financial's beta coefficient measures the volatility of Citizens stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Citizens stock's returns against your selected market. In other words, Citizens Financial's beta of 1.41 provides an investor with an approximation of how much risk Citizens Financial stock can potentially add to one of your existing portfolios. Citizens Financial Group has relatively low volatility with skewness of -0.26 and kurtosis of 0.65. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Citizens Financial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Citizens Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Citizens Financial Demand TrendCheck current 90 days Citizens Financial correlation with market (NYSE Composite)Citizens Beta |
Citizens standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 1.93 |
It is essential to understand the difference between upside risk (as represented by Citizens Financial's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Citizens Financial's daily returns or price. Since the actual investment returns on holding a position in citizens stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Citizens Financial.
Using Citizens Put Option to Manage Risk
Put options written on Citizens Financial grant holders of the option the right to sell a specified amount of Citizens Financial at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Citizens Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Citizens Financial's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Citizens Financial will be realized, the loss incurred will be offset by the profits made with the option trade.
Citizens Financial's PUT expiring on 2024-04-19
Profit |
| Citizens Financial Price At Expiration |
Current Citizens Financial Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-04-19 PUT at $37.5 | -0.8619 | 0.0587 | 10 | 2024-04-19 | 4.5 - 5.2 | 4.41 | View |
Put | 2024-04-19 PUT at $35.0 | -0.7817 | 0.1182 | 232 | 2024-04-19 | 0.25 - 2.4 | 1.91 | View |
Put | 2024-04-19 PUT at $32.5 | -0.2772 | 0.4829 | 3126 | 2024-04-19 | 0.1 - 0.15 | 0.12 | View |
Put | 2024-04-19 PUT at $30.0 | -0.0409 | 0.0495 | 4196 | 2024-04-19 | 0.0 - 0.05 | 0.03 | View |
Put | 2024-04-19 PUT at $27.5 | -0.0249 | 0.0189 | 1521 | 2024-04-19 | 0.0 - 0.05 | 0.03 | View |
Citizens Financial Stock Volatility Analysis
Volatility refers to the frequency at which Citizens Financial stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Citizens Financial's price changes. Investors will then calculate the volatility of Citizens Financial's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Citizens Financial's volatility:
Historical Volatility
This type of stock volatility measures Citizens Financial's fluctuations based on previous trends. It's commonly used to predict Citizens Financial's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Citizens Financial's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Citizens Financial's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Citizens Financial Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Citizens Financial Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.4101 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Citizens Financial will likely underperform.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Citizens Financial or Banks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Citizens Financial's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Citizens stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Citizens Financial Group has an alpha of 0.0251, implying that it can generate a 0.0251 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Citizens Financial Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Citizens Financial Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Citizens Financial is 7668.63. The daily returns are distributed with a variance of 3.74 and standard deviation of 1.93. The mean deviation of Citizens Financial Group is currently at 1.43. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.03 | |
β | Beta against NYSE Composite | 1.41 | |
σ | Overall volatility | 1.93 | |
Ir | Information ratio | 0.03 |
Citizens Financial Stock Return Volatility
Citizens Financial historical daily return volatility represents how much of Citizens Financial stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.9329% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6214% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Citizens Financial Volatility
Volatility is a rate at which the price of Citizens Financial or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Citizens Financial may increase or decrease. In other words, similar to Citizens's beta indicator, it measures the risk of Citizens Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Citizens Financial fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 187 M | 123.5 M | |
| Market Cap | 15.7 B | 12.8 B |
Citizens Financial's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Citizens Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Citizens Financial's price varies over time.
3 ways to utilize Citizens Financial's volatility to invest better
Higher Citizens Financial's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Citizens Financial stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Citizens Financial stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Citizens Financial investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Citizens Financial's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Citizens Financial's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Citizens Financial Investment Opportunity
Citizens Financial Group has a volatility of 1.93 and is 3.11 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Citizens Financial Group is lower than 17 percent of all global equities and portfolios over the last 90 days. You can use Citizens Financial Group to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Citizens Financial to be traded at $32.57 in 90 days.Very weak diversification
The correlation between Citizens Financial Group and NYA is 0.45 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Group and NYA in the same portfolio, assuming nothing else is changed.
Citizens Financial Additional Risk Indicators
The analysis of Citizens Financial's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Citizens Financial's investment and either accepting that risk or mitigating it. Along with some common measures of Citizens Financial stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0442 | |||
| Market Risk Adjusted Performance | 0.0864 | |||
| Mean Deviation | 1.47 | |||
| Semi Deviation | 1.84 | |||
| Downside Deviation | 1.9 | |||
| Coefficient Of Variation | 1654.79 | |||
| Standard Deviation | 1.95 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Citizens Financial Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Citizens Financial as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Citizens Financial's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Citizens Financial's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Citizens Financial Group.
When determining whether Citizens Financial is a strong investment it is important to analyze Citizens Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Citizens Financial's future performance. For an informed investment choice regarding Citizens Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Citizens Financial Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. Note that the Citizens Financial information on this page should be used as a complementary analysis to other Citizens Financial's statistical models used 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Complementary Tools for Citizens Stock analysis
When running Citizens Financial's price analysis, check to measure Citizens Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Citizens Financial is operating at the current time. Most of Citizens Financial's value examination focuses on studying past and present price action to predict the probability of Citizens Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Citizens Financial's price. Additionally, you may evaluate how the addition of Citizens Financial to your portfolios can decrease your overall portfolio volatility.
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Is Citizens Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Citizens Financial. If investors know Citizens will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Citizens Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.73) | Dividend Share 1.68 | Earnings Share 3.13 | Revenue Per Share 15.864 | Quarterly Revenue Growth (0.11) |
The market value of Citizens Financial is measured differently than its book value, which is the value of Citizens that is recorded on the company's balance sheet. Investors also form their own opinion of Citizens Financial's value that differs from its market value or its book value, called intrinsic value, which is Citizens Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Citizens Financial's market value can be influenced by many factors that don't directly affect Citizens Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Citizens Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Citizens Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Citizens Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.