Correlation Between First Citizens and X-FAB Silicon

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

Diversification Opportunities for First Citizens and X-FAB Silicon

-0.89

Correlation Coefficient

First Citizens  X-FAB Silicon

Pay attention - limited upside

The 3 months correlation between First and X-FAB is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding The First Citizens and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon 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 X-FAB Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X FAB Silicon has no effect on the direction of First Citizens i.e., First Citizens and X-FAB Silicon go up and down completely randomly.

Pair Corralation between First Citizens and X-FAB Silicon

Given the investment horizon of 90 days The First Citizens is expected to under-perform the X-FAB Silicon. In addition to that, First Citizens is 5.1 times more volatile than X FAB Silicon Foundries. It trades about -0.15 of its total potential returns per unit of risk. X FAB Silicon Foundries is currently generating about 0.2 per unit of volatility. If you would invest  550.00  in X FAB Silicon Foundries on April 30, 2025 and sell it today you would earn a total of  178.00  from holding X FAB Silicon Foundries or generate 32.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	68.85%
Values	Daily Returns

The First Citizens  vs.  X FAB Silicon Foundries

First Citizens

Risk-Adjusted Performance

Very Weak

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

X FAB Silicon

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in X FAB Silicon Foundries are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental drivers, X-FAB Silicon reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with First Citizens and X-FAB Silicon

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

The idea behind The First Citizens and X FAB Silicon Foundries 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.