Correlation Between First Citizens and Gap,

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

Diversification Opportunities for First Citizens and Gap,

0.0

Correlation Coefficient

First Citizens  Gap,

Pay attention - limited upside

The 3 months correlation between First and Gap, is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The First Citizens and The Gap, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap, 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 Gap,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap, has no effect on the direction of First Citizens i.e., First Citizens and Gap, go up and down completely randomly.

Pair Corralation between First Citizens and Gap,

If you would invest (100.00) in The First Citizens on December 26, 2024 and sell it today you would earn a total of  100.00  from holding The First Citizens or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

The First Citizens  vs.  The Gap,

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

Gap,

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Gap, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with First Citizens and Gap,

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

The idea behind The First Citizens and The Gap, 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.

Check out your portfolio center.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .