Correlation Between Republic Bancorp and INTNED

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

By analyzing existing cross correlation between Republic Bancorp and INTNED 547761 01 APR 27, you can compare the effects of market volatilities on Republic Bancorp and INTNED 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 INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Republic Bancorp and INTNED.

Diversification Opportunities for Republic Bancorp and INTNED

0.13

Correlation Coefficient

Republic Bancorp  INTNED

Average diversification

The 3 months correlation between Republic and INTNED is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Republic Bancorp and INTNED 547761 01 APR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 547761 01 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 INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 547761 01 has no effect on the direction of Republic Bancorp i.e., Republic Bancorp and INTNED go up and down completely randomly.

Pair Corralation between Republic Bancorp and INTNED

Assuming the 90 days horizon Republic Bancorp is expected to under-perform the INTNED. In addition to that, Republic Bancorp is 3.81 times more volatile than INTNED 547761 01 APR 27. It trades about -0.21 of its total potential returns per unit of risk. INTNED 547761 01 APR 27 is currently generating about -0.41 per unit of volatility. If you would invest  10,047  in INTNED 547761 01 APR 27 on September 23, 2024 and sell it today you would lose (163.00) from holding INTNED 547761 01 APR 27 or give up 1.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	42.86%
Values	Daily Returns

Republic Bancorp  vs.  INTNED 547761 01 APR 27

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.

INTNED 547761 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 547761 01 APR 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Republic Bancorp and INTNED

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

The idea behind Republic Bancorp and INTNED 547761 01 APR 27 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.