Correlation Between First Citizens and Kilroy Realty

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

Diversification Opportunities for First Citizens and Kilroy Realty

-0.8

Correlation Coefficient

First Citizens  Kilroy Realty

Pay attention - limited upside

The 3 months correlation between First and Kilroy is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding The First Citizens and Kilroy Realty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kilroy Realty Corp 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 Kilroy Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kilroy Realty Corp has no effect on the direction of First Citizens i.e., First Citizens and Kilroy Realty go up and down completely randomly.

Pair Corralation between First Citizens and Kilroy Realty

Given the investment horizon of 90 days The First Citizens is expected to under-perform the Kilroy Realty. In addition to that, First Citizens is 8.26 times more volatile than Kilroy Realty Corp. It trades about -0.16 of its total potential returns per unit of risk. Kilroy Realty Corp is currently generating about 0.22 per unit of volatility. If you would invest  3,065  in Kilroy Realty Corp on May 8, 2025 and sell it today you would earn a total of  717.00  from holding Kilroy Realty Corp or generate 23.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	58.06%
Values	Daily Returns

The First Citizens  vs.  Kilroy Realty Corp

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.

Kilroy Realty Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kilroy Realty Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Kilroy Realty exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with First Citizens and Kilroy Realty

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

The idea behind The First Citizens and Kilroy Realty Corp 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.