Correlation Between First Citizens and North Dallas

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

Diversification Opportunities for First Citizens and North Dallas

-0.49

Correlation Coefficient

First Citizens  North Dallas

Very good diversification

The 3 months correlation between First and North is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding The First Citizens and North Dallas Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Dallas Bank 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 North Dallas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Dallas Bank has no effect on the direction of First Citizens i.e., First Citizens and North Dallas go up and down completely randomly.

Pair Corralation between First Citizens and North Dallas

Given the investment horizon of 90 days The First Citizens is expected to under-perform the North Dallas. In addition to that, First Citizens is 25.94 times more volatile than North Dallas Bank. It trades about -0.17 of its total potential returns per unit of risk. North Dallas Bank is currently generating about 0.11 per unit of volatility. If you would invest  5,525  in North Dallas Bank on May 14, 2025 and sell it today you would earn a total of  200.00  from holding North Dallas Bank or generate 3.62% return on investment over 90 days.

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

The First Citizens  vs.  North Dallas Bank

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.

North Dallas Bank

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in North Dallas Bank are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, North Dallas is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with First Citizens and North Dallas

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

The idea behind The First Citizens and North Dallas Bank 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.