Correlation Between First Citizens and First Bankers

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

Diversification Opportunities for First Citizens and First Bankers

-0.6

Correlation Coefficient

First Citizens  First Bankers

Excellent diversification

The 3 months correlation between First and First is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding The First Citizens and First Bankers Trustshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bankers Trustshares 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 First Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bankers Trustshares has no effect on the direction of First Citizens i.e., First Citizens and First Bankers go up and down completely randomly.

Pair Corralation between First Citizens and First Bankers

Given the investment horizon of 90 days The First Citizens is expected to under-perform the First Bankers. In addition to that, First Citizens is 32.19 times more volatile than First Bankers Trustshares. It trades about -0.19 of its total potential returns per unit of risk. First Bankers Trustshares is currently generating about 0.12 per unit of volatility. If you would invest  1,608  in First Bankers Trustshares on May 25, 2025 and sell it today you would earn a total of  62.00  from holding First Bankers Trustshares or generate 3.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	38.71%
Values	Daily Returns

The First Citizens  vs.  First Bankers Trustshares

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 weak 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.

First Bankers Trustshares

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in First Bankers Trustshares are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, First Bankers is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with First Citizens and First Bankers

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

The idea behind The First Citizens and First Bankers Trustshares 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.