Correlation Between Kilroy Realty and First Citizens

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

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

Diversification Opportunities for Kilroy Realty and First Citizens

-0.8

Correlation Coefficient

Kilroy Realty  First Citizens

Pay attention - limited upside

The 3 months correlation between Kilroy and First is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kilroy Realty Corp and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and Kilroy Realty 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 Kilroy Realty Corp 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 Kilroy Realty i.e., Kilroy Realty and First Citizens go up and down completely randomly.

Pair Corralation between Kilroy Realty and First Citizens

Considering the 90-day investment horizon Kilroy Realty Corp is expected to generate 0.12 times more return on investment than First Citizens. However, Kilroy Realty Corp is 8.24 times less risky than First Citizens. It trades about 0.19 of its potential returns per unit of risk. The First Citizens is currently generating about -0.15 per unit of risk. If you would invest  3,033  in Kilroy Realty Corp on May 6, 2025 and sell it today you would earn a total of  622.00  from holding Kilroy Realty Corp or generate 20.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	60.32%
Values	Daily Returns

Kilroy Realty Corp  vs.  The First Citizens

Kilroy Realty Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kilroy Realty Corp are ranked lower than 15 (%) 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.

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 unfluctuating 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.

Pair Trading with Kilroy Realty and First Citizens

The main advantage of trading using opposite Kilroy Realty and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kilroy Realty 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 Kilroy Realty Corp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.