Correlation Between Republic Bancorp and 251566AA3

Can any of the company-specific risk be diversified away by investing in both Republic Bancorp and 251566AA3 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 Republic Bancorp and 251566AA3 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Republic Bancorp and DT 3625 21 JAN 50, you can compare the effects of market volatilities on Republic Bancorp and 251566AA3 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 Republic Bancorp with a short position of 251566AA3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Republic Bancorp and 251566AA3.

Diversification Opportunities for Republic Bancorp and 251566AA3

-0.54

Correlation Coefficient

Republic Bancorp  251566AA3

Excellent diversification

The 3 months correlation between Republic and 251566AA3 is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Republic Bancorp and DT 3625 21 JAN 50 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DT 3625 21 and Republic Bancorp 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 Republic Bancorp are associated (or correlated) with 251566AA3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DT 3625 21 has no effect on the direction of Republic Bancorp i.e., Republic Bancorp and 251566AA3 go up and down completely randomly.

Pair Corralation between Republic Bancorp and 251566AA3

Assuming the 90 days horizon Republic Bancorp is expected to generate 1.09 times less return on investment than 251566AA3. In addition to that, Republic Bancorp is 1.24 times more volatile than DT 3625 21 JAN 50. It trades about 0.07 of its total potential returns per unit of risk. DT 3625 21 JAN 50 is currently generating about 0.1 per unit of volatility. If you would invest  7,757  in DT 3625 21 JAN 50 on September 23, 2024 and sell it today you would earn a total of  611.00  from holding DT 3625 21 JAN 50 or generate 7.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	66.15%
Values	Daily Returns

Republic Bancorp  vs.  DT 3625 21 JAN 50

Republic Bancorp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Republic Bancorp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Republic Bancorp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

DT 3625 21

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DT 3625 21 JAN 50 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, 251566AA3 may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Republic Bancorp and 251566AA3

The main advantage of trading using opposite Republic Bancorp and 251566AA3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Republic Bancorp position performs unexpectedly, 251566AA3 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 251566AA3 will offset losses from the drop in 251566AA3's long position.

The idea behind Republic Bancorp and DT 3625 21 JAN 50 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.