Correlation Between Hurco Companies and First Citizens

Can any of the company-specific risk be diversified away by investing in both Hurco Companies and First Citizens 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 Hurco Companies and First Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hurco Companies and The First Citizens, you can compare the effects of market volatilities on Hurco Companies and First Citizens 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 Hurco Companies with a short position of First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and First Citizens.

Diversification Opportunities for Hurco Companies and First Citizens

0.7

Correlation Coefficient

Hurco Companies  First Citizens

Poor diversification

The 3 months correlation between Hurco and First is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and Hurco Companies 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 Hurco Companies are associated (or correlated) with First Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Citizens has no effect on the direction of Hurco Companies i.e., Hurco Companies and First Citizens go up and down completely randomly.

Pair Corralation between Hurco Companies and First Citizens

Given the investment horizon of 90 days Hurco Companies is expected to generate 0.3 times more return on investment than First Citizens. However, Hurco Companies is 3.38 times less risky than First Citizens. It trades about 0.0 of its potential returns per unit of risk. The First Citizens is currently generating about -0.11 per unit of risk. If you would invest  2,004  in Hurco Companies on July 4, 2025 and sell it today you would lose (192.00) from holding Hurco Companies or give up 9.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	19.39%
Values	Daily Returns

Hurco Companies  vs.  The First Citizens

Hurco Companies

Risk-Adjusted Performance

Weakest

Over the last 90 days Hurco Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

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 quite persistent fundamental indicators, First Citizens is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Hurco Companies and First Citizens

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

The idea behind Hurco Companies and The First Citizens 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.