Correlation Between Exchange Bank and First Citizens

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

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

Diversification Opportunities for Exchange Bank and First Citizens

0.0

Correlation Coefficient

Exchange Bank  First Citizens

Pay attention - limited upside

The 3 months correlation between Exchange and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Bank 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 Exchange Bank 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 Exchange Bank 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 Exchange Bank i.e., Exchange Bank and First Citizens go up and down completely randomly.

Pair Corralation between Exchange Bank and First Citizens

If you would invest  11,200  in Exchange Bank on August 28, 2025 and sell it today you would earn a total of  900.00  from holding Exchange Bank or generate 8.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Exchange Bank  vs.  First Citizens Bancshares

Exchange Bank

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Exchange Bank are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Exchange Bank may actually be approaching a critical reversion point that can send shares even higher in December 2025.

First Citizens Bancshares

Risk-Adjusted Performance

Weakest

Over the last 90 days First Citizens Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, First Citizens is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Exchange Bank and First Citizens

The main advantage of trading using opposite Exchange Bank and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exchange Bank 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 Exchange Bank and First Citizens Bancshares 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.