Correlation Between First State and FirstSun Capital
Can any of the company-specific risk be diversified away by investing in both First State and FirstSun Capital 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 State and FirstSun Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First State Financial and FirstSun Capital Bancorp, you can compare the effects of market volatilities on First State and FirstSun Capital 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 State with a short position of FirstSun Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and FirstSun Capital.
Diversification Opportunities for First State and FirstSun Capital
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and FirstSun is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and FirstSun Capital Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstSun Capital Bancorp and First State 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 State Financial are associated (or correlated) with FirstSun Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstSun Capital Bancorp has no effect on the direction of First State i.e., First State and FirstSun Capital go up and down completely randomly.
Pair Corralation between First State and FirstSun Capital
Given the investment horizon of 90 days First State Financial is expected to generate 13.42 times more return on investment than FirstSun Capital. However, First State is 13.42 times more volatile than FirstSun Capital Bancorp. It trades about 0.13 of its potential returns per unit of risk. FirstSun Capital Bancorp is currently generating about 0.1 per unit of risk. If you would invest 1.65 in First State Financial on October 31, 2025 and sell it today you would earn a total of 0.45 from holding First State Financial or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
First State Financial vs. FirstSun Capital Bancorp
Performance |
| Timeline |
| First State Financial |
| FirstSun Capital Bancorp |
First State and FirstSun Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First State and FirstSun Capital
The main advantage of trading using opposite First State and FirstSun Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State position performs unexpectedly, FirstSun Capital 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 FirstSun Capital will offset losses from the drop in FirstSun Capital's long position.| First State vs. First Republic Bank | First State vs. BioCube | First State vs. Trend Exploration I | First State vs. Eastern Goldfields |
| FirstSun Capital vs. Tompkins Financial | FirstSun Capital vs. Old Second Bancorp | FirstSun Capital vs. Texas Capital Bancshares | FirstSun Capital vs. Burke Herbert Financial |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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