Correlation Between First Citizens and CCFNB Bancorp

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

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

Diversification Opportunities for First Citizens and CCFNB Bancorp

-0.73

Correlation Coefficient

First Citizens  CCFNB Bancorp

Pay attention - limited upside

The 3 months correlation between First and CCFNB is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding The First Citizens and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp 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 The First Citizens are associated (or correlated) with CCFNB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCFNB Bancorp has no effect on the direction of First Citizens i.e., First Citizens and CCFNB Bancorp go up and down completely randomly.

Pair Corralation between First Citizens and CCFNB Bancorp

Given the investment horizon of 90 days The First Citizens is expected to under-perform the CCFNB Bancorp. In addition to that, First Citizens is 8.39 times more volatile than CCFNB Bancorp. It trades about -0.17 of its total potential returns per unit of risk. CCFNB Bancorp is currently generating about 0.09 per unit of volatility. If you would invest  4,382  in CCFNB Bancorp on May 16, 2025 and sell it today you would earn a total of  411.00  from holding CCFNB Bancorp or generate 9.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	49.18%
Values	Daily Returns

The First Citizens  vs.  CCFNB Bancorp

First Citizens

Risk-Adjusted Performance

Weakest

Over the last 90 days The First Citizens has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

CCFNB Bancorp

Risk-Adjusted Performance

Fair

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

Pair Trading with First Citizens and CCFNB Bancorp

The main advantage of trading using opposite First Citizens and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Citizens position performs unexpectedly, CCFNB Bancorp 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 CCFNB Bancorp will offset losses from the drop in CCFNB Bancorp's long position.

The idea behind The First Citizens and CCFNB Bancorp 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.