Correlation Between FirstSun Capital and CullenFrost Bankers
Can any of the company-specific risk be diversified away by investing in both FirstSun Capital and CullenFrost Bankers 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 FirstSun Capital and CullenFrost Bankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FirstSun Capital Bancorp and CullenFrost Bankers, you can compare the effects of market volatilities on FirstSun Capital and CullenFrost Bankers 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 FirstSun Capital with a short position of CullenFrost Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of FirstSun Capital and CullenFrost Bankers.
Diversification Opportunities for FirstSun Capital and CullenFrost Bankers
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FirstSun and CullenFrost is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding FirstSun Capital Bancorp and CullenFrost Bankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CullenFrost Bankers and FirstSun Capital 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 FirstSun Capital Bancorp are associated (or correlated) with CullenFrost Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CullenFrost Bankers has no effect on the direction of FirstSun Capital i.e., FirstSun Capital and CullenFrost Bankers go up and down completely randomly.
Pair Corralation between FirstSun Capital and CullenFrost Bankers
Given the investment horizon of 90 days FirstSun Capital Bancorp is expected to under-perform the CullenFrost Bankers. In addition to that, FirstSun Capital is 1.88 times more volatile than CullenFrost Bankers. It trades about -0.05 of its total potential returns per unit of risk. CullenFrost Bankers is currently generating about -0.01 per unit of volatility. If you would invest 12,523 in CullenFrost Bankers on August 18, 2025 and sell it today you would lose (245.00) from holding CullenFrost Bankers or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FirstSun Capital Bancorp vs. CullenFrost Bankers
Performance |
| Timeline |
| FirstSun Capital Bancorp |
| CullenFrost Bankers |
FirstSun Capital and CullenFrost Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FirstSun Capital and CullenFrost Bankers
The main advantage of trading using opposite FirstSun Capital and CullenFrost Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FirstSun Capital position performs unexpectedly, CullenFrost Bankers 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 CullenFrost Bankers will offset losses from the drop in CullenFrost Bankers' long position.| FirstSun Capital vs. Tompkins Financial | FirstSun Capital vs. Old Second Bancorp | FirstSun Capital vs. Texas Capital Bancshares | FirstSun Capital vs. Burke Herbert Financial |
| CullenFrost Bankers vs. Old National Bancorp | CullenFrost Bankers vs. UMB Financial | CullenFrost Bankers vs. Popular | CullenFrost Bankers vs. Commerce Bancshares |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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