Correlation Between Republic Bancorp and 665859AX2

Can any of the company-specific risk be diversified away by investing in both Republic Bancorp and 665859AX2 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 665859AX2 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 6125 02 NOV 32, you can compare the effects of market volatilities on Republic Bancorp and 665859AX2 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 665859AX2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Republic Bancorp and 665859AX2.

Diversification Opportunities for Republic Bancorp and 665859AX2

-0.4

Correlation Coefficient

Republic Bancorp  665859AX2

Very good diversification

The 3 months correlation between Republic and 665859AX2 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Republic Bancorp and NTRS 6125 02 NOV 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTRS 6125 02 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 665859AX2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTRS 6125 02 has no effect on the direction of Republic Bancorp i.e., Republic Bancorp and 665859AX2 go up and down completely randomly.

Pair Corralation between Republic Bancorp and 665859AX2

Assuming the 90 days horizon Republic Bancorp is expected to under-perform the 665859AX2. In addition to that, Republic Bancorp is 1.89 times more volatile than NTRS 6125 02 NOV 32. It trades about -0.23 of its total potential returns per unit of risk. NTRS 6125 02 NOV 32 is currently generating about -0.28 per unit of volatility. If you would invest  10,854  in NTRS 6125 02 NOV 32 on October 3, 2024 and sell it today you would lose (606.00) from holding NTRS 6125 02 NOV 32 or give up 5.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Republic Bancorp  vs.  NTRS 6125 02 NOV 32

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 6125 02

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NTRS 6125 02 NOV 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NTRS 6125 02 NOV 32 investors.

Pair Trading with Republic Bancorp and 665859AX2

The main advantage of trading using opposite Republic Bancorp and 665859AX2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Republic Bancorp position performs unexpectedly, 665859AX2 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 665859AX2 will offset losses from the drop in 665859AX2's long position.

The idea behind Republic Bancorp and NTRS 6125 02 NOV 32 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..