Correlation Between Republic Bancorp and 866677AE7

Can any of the company-specific risk be diversified away by investing in both Republic Bancorp and 866677AE7 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 866677AE7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Republic Bancorp and SUI 27 15 JUL 31, you can compare the effects of market volatilities on Republic Bancorp and 866677AE7 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 866677AE7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Republic Bancorp and 866677AE7.

Diversification Opportunities for Republic Bancorp and 866677AE7

-0.24

Correlation Coefficient

Republic Bancorp  866677AE7

Very good diversification

The 3 months correlation between Republic and 866677AE7 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Republic Bancorp and SUI 27 15 JUL 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUI 27 15 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 866677AE7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUI 27 15 has no effect on the direction of Republic Bancorp i.e., Republic Bancorp and 866677AE7 go up and down completely randomly.

Pair Corralation between Republic Bancorp and 866677AE7

Assuming the 90 days horizon Republic Bancorp is expected to generate 4.25 times more return on investment than 866677AE7. However, Republic Bancorp is 4.25 times more volatile than SUI 27 15 JUL 31. It trades about 0.01 of its potential returns per unit of risk. SUI 27 15 JUL 31 is currently generating about -0.12 per unit of risk. If you would invest  6,522  in Republic Bancorp on October 15, 2024 and sell it today you would lose (11.00) from holding Republic Bancorp or give up 0.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	80.33%
Values	Daily Returns

Republic Bancorp  vs.  SUI 27 15 JUL 31

Republic Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

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

SUI 27 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SUI 27 15 JUL 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 866677AE7 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 866677AE7

The main advantage of trading using opposite Republic Bancorp and 866677AE7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Republic Bancorp position performs unexpectedly, 866677AE7 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 866677AE7 will offset losses from the drop in 866677AE7's long position.

The idea behind Republic Bancorp and SUI 27 15 JUL 31 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.