Correlation Between Republic Bancorp and 665859AW4

Can any of the company-specific risk be diversified away by investing in both Republic Bancorp and 665859AW4 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 665859AW4 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Republic Bancorp and NTRS 4 10 MAY 27, you can compare the effects of market volatilities on Republic Bancorp and 665859AW4 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 665859AW4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Republic Bancorp and 665859AW4.

Diversification Opportunities for Republic Bancorp and 665859AW4

-0.38

Correlation Coefficient

Republic Bancorp  665859AW4

Very good diversification

The 3 months correlation between Republic and 665859AW4 is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Republic Bancorp and NTRS 4 10 MAY 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTRS 4 10 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 665859AW4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTRS 4 10 has no effect on the direction of Republic Bancorp i.e., Republic Bancorp and 665859AW4 go up and down completely randomly.

Pair Corralation between Republic Bancorp and 665859AW4

Assuming the 90 days horizon Republic Bancorp is expected to generate 6.62 times more return on investment than 665859AW4. However, Republic Bancorp is 6.62 times more volatile than NTRS 4 10 MAY 27. It trades about 0.1 of its potential returns per unit of risk. NTRS 4 10 MAY 27 is currently generating about -0.16 per unit of risk. If you would invest  6,092  in Republic Bancorp on October 3, 2024 and sell it today you would earn a total of  895.00  from holding Republic Bancorp or generate 14.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Republic Bancorp  vs.  NTRS 4 10 MAY 27

Republic Bancorp

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Republic Bancorp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Republic Bancorp sustained solid returns over the last few months and may actually be approaching a breakup point.

NTRS 4 10

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NTRS 4 10 MAY 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 665859AW4 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Republic Bancorp and 665859AW4

The main advantage of trading using opposite Republic Bancorp and 665859AW4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Republic Bancorp position performs unexpectedly, 665859AW4 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 665859AW4 will offset losses from the drop in 665859AW4's long position.

The idea behind Republic Bancorp and NTRS 4 10 MAY 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.