Correlation Between Consumers Bancorp and First Citizens

Can any of the company-specific risk be diversified away by investing in both Consumers Bancorp 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 Consumers Bancorp and First Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Consumers Bancorp and The First Citizens, you can compare the effects of market volatilities on Consumers Bancorp 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 Consumers Bancorp with a short position of First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consumers Bancorp and First Citizens.

Diversification Opportunities for Consumers Bancorp and First Citizens

-0.82

Correlation Coefficient

Consumers Bancorp  First Citizens

Pay attention - limited upside

The 3 months correlation between Consumers and First is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Consumers Bancorp and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and Consumers Bancorp 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 Consumers Bancorp 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 has no effect on the direction of Consumers Bancorp i.e., Consumers Bancorp and First Citizens go up and down completely randomly.

Pair Corralation between Consumers Bancorp and First Citizens

Given the investment horizon of 90 days Consumers Bancorp is expected to generate 1.63 times less return on investment than First Citizens. In addition to that, Consumers Bancorp is 1.36 times more volatile than The First Citizens. It trades about 0.09 of its total potential returns per unit of risk. The First Citizens is currently generating about 0.21 per unit of volatility. If you would invest  1,240  in The First Citizens on May 28, 2025 and sell it today you would earn a total of  60.00  from holding The First Citizens or generate 4.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	37.1%
Values	Daily Returns

Consumers Bancorp  vs.  The First Citizens

Consumers Bancorp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Consumers Bancorp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting forward-looking signals, Consumers Bancorp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

First Citizens

Risk-Adjusted Performance

Solid

Over the last 90 days The First Citizens has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite unsteady fundamental indicators, First Citizens disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Consumers Bancorp and First Citizens

The main advantage of trading using opposite Consumers Bancorp and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consumers Bancorp 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.

The idea behind Consumers Bancorp and The First Citizens 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.

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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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.