Correlation Between First Citizens and First Citizens
Can any of the company-specific risk be diversified away by investing in both First Citizens and First Citizens 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 First Citizens and First Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Citizens BancShares and First Citizens BancShares, you can compare the effects of market volatilities on First Citizens and First Citizens 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 First Citizens with a short position of First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Citizens and First Citizens.
Diversification Opportunities for First Citizens and First Citizens
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and First is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding First Citizens BancShares and First Citizens BancShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens BancShares and First Citizens 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 First Citizens BancShares are associated (or correlated) with First Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Citizens BancShares has no effect on the direction of First Citizens i.e., First Citizens and First Citizens go up and down completely randomly.
Pair Corralation between First Citizens and First Citizens
Assuming the 90 days horizon First Citizens is expected to generate 1.24 times less return on investment than First Citizens. In addition to that, First Citizens is 1.05 times more volatile than First Citizens BancShares. It trades about 0.07 of its total potential returns per unit of risk. First Citizens BancShares is currently generating about 0.1 per unit of volatility. If you would invest 168,637 in First Citizens BancShares on September 3, 2024 and sell it today you would earn a total of 53,684 from holding First Citizens BancShares or generate 31.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Citizens BancShares vs. First Citizens BancShares
Performance |
| Timeline |
| First Citizens BancShares |
| First Citizens BancShares |
First Citizens and First Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Citizens and First Citizens
The main advantage of trading using opposite First Citizens and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Citizens position performs unexpectedly, First Citizens 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 First Citizens will offset losses from the drop in First Citizens' long position.| First Citizens vs. First Citizens BancShares | First Citizens vs. Farmers And Merchants | First Citizens vs. Fentura Financial | First Citizens vs. First Keystone Corp |
| First Citizens vs. Zions Bancorporation | First Citizens vs. KeyCorp | First Citizens vs. Comerica | First Citizens vs. First Horizon 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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