Correlation Between Phenixfin and First Citizens

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

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

Diversification Opportunities for Phenixfin and First Citizens

-0.14

Correlation Coefficient

Phenixfin  First Citizens

Good diversification

The 3 months correlation between Phenixfin and First is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Phenixfin and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and Phenixfin 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 Phenixfin 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 Phenixfin i.e., Phenixfin and First Citizens go up and down completely randomly.

Pair Corralation between Phenixfin and First Citizens

Considering the 90-day investment horizon Phenixfin is expected to generate 0.09 times more return on investment than First Citizens. However, Phenixfin is 11.36 times less risky than First Citizens. It trades about 0.05 of its potential returns per unit of risk. The First Citizens is currently generating about -0.16 per unit of risk. If you would invest  4,896  in Phenixfin on May 9, 2025 and sell it today you would earn a total of  139.00  from holding Phenixfin or generate 2.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	68.63%
Values	Daily Returns

Phenixfin  vs.  The First Citizens

Phenixfin

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Phenixfin are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, Phenixfin is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

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 fragile 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 Phenixfin and First Citizens

The main advantage of trading using opposite Phenixfin and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phenixfin 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 Phenixfin 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.