Correlation Between Bassett Furniture and First Republic
Can any of the company-specific risk be diversified away by investing in both Bassett Furniture and First Republic 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 Bassett Furniture and First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bassett Furniture Industries and First Republic Bank, you can compare the effects of market volatilities on Bassett Furniture and First Republic 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 Bassett Furniture with a short position of First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bassett Furniture and First Republic.
Diversification Opportunities for Bassett Furniture and First Republic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bassett and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bassett Furniture Industries and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank and Bassett Furniture 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 Bassett Furniture Industries are associated (or correlated) with First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Bassett Furniture i.e., Bassett Furniture and First Republic go up and down completely randomly.
Pair Corralation between Bassett Furniture and First Republic
If you would invest 1,530 in Bassett Furniture Industries on December 5, 2024 and sell it today you would earn a total of 8.00 from holding Bassett Furniture Industries or generate 0.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Bassett Furniture Industries vs. First Republic Bank
Performance |
Timeline |
Bassett Furniture |
First Republic Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bassett Furniture and First Republic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bassett Furniture and First Republic
The main advantage of trading using opposite Bassett Furniture and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bassett Furniture position performs unexpectedly, First Republic 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 Republic will offset losses from the drop in First Republic's long position.Bassett Furniture vs. Hooker Furniture | Bassett Furniture vs. Flexsteel Industries | Bassett Furniture vs. Haverty Furniture Companies | Bassett Furniture vs. La Z Boy Incorporated |
First Republic vs. Teleflex Incorporated | First Republic vs. Adtalem Global Education | First Republic vs. Repligen | First Republic vs. Udemy Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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