Correlation Between First Citizens and Croghan Bancshares

Can any of the company-specific risk be diversified away by investing in both First Citizens and Croghan Bancshares 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 Croghan Bancshares 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 Croghan Bancshares, you can compare the effects of market volatilities on First Citizens and Croghan Bancshares 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 Croghan Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Citizens and Croghan Bancshares.

Diversification Opportunities for First Citizens and Croghan Bancshares

-0.09

Correlation Coefficient

First Citizens  Croghan Bancshares

Good diversification

The 3 months correlation between First and Croghan is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding The First Citizens and Croghan Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Croghan 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 The First Citizens are associated (or correlated) with Croghan Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Croghan Bancshares has no effect on the direction of First Citizens i.e., First Citizens and Croghan Bancshares go up and down completely randomly.

Pair Corralation between First Citizens and Croghan Bancshares

Given the investment horizon of 90 days The First Citizens is expected to under-perform the Croghan Bancshares. In addition to that, First Citizens is 13.33 times more volatile than Croghan Bancshares. It trades about -0.17 of its total potential returns per unit of risk. Croghan Bancshares is currently generating about 0.07 per unit of volatility. If you would invest  4,742  in Croghan Bancshares on May 14, 2025 and sell it today you would earn a total of  208.00  from holding Croghan Bancshares or generate 4.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	51.61%
Values	Daily Returns

The First Citizens  vs.  Croghan Bancshares

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 unsteady 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.

Croghan Bancshares

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Croghan Bancshares are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental drivers, Croghan Bancshares is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with First Citizens and Croghan Bancshares

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

The idea behind The First Citizens and Croghan 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.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.