Correlation Between Republic Bancorp and 88339WAA4

Can any of the company-specific risk be diversified away by investing in both Republic Bancorp and 88339WAA4 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 88339WAA4 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Republic Bancorp and WMB 35 15 OCT 51, you can compare the effects of market volatilities on Republic Bancorp and 88339WAA4 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 88339WAA4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Republic Bancorp and 88339WAA4.

Diversification Opportunities for Republic Bancorp and 88339WAA4

-0.48

Correlation Coefficient

Republic Bancorp  88339WAA4

Very good diversification

The 3 months correlation between Republic and 88339WAA4 is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Republic Bancorp and WMB 35 15 OCT 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WMB 35 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 88339WAA4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WMB 35 15 has no effect on the direction of Republic Bancorp i.e., Republic Bancorp and 88339WAA4 go up and down completely randomly.

Pair Corralation between Republic Bancorp and 88339WAA4

Assuming the 90 days horizon Republic Bancorp is expected to under-perform the 88339WAA4. But the stock apears to be less risky and, when comparing its historical volatility, Republic Bancorp is 1.42 times less risky than 88339WAA4. The stock trades about -0.17 of its potential returns per unit of risk. The WMB 35 15 OCT 51 is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  7,270  in WMB 35 15 OCT 51 on September 28, 2024 and sell it today you would lose (224.00) from holding WMB 35 15 OCT 51 or give up 3.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	85.71%
Values	Daily Returns

Republic Bancorp  vs.  WMB 35 15 OCT 51

Republic Bancorp

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Republic Bancorp are ranked lower than 4 (%) 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.

WMB 35 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WMB 35 15 OCT 51 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 88339WAA4 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 88339WAA4

The main advantage of trading using opposite Republic Bancorp and 88339WAA4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Republic Bancorp position performs unexpectedly, 88339WAA4 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 88339WAA4 will offset losses from the drop in 88339WAA4's long position.

The idea behind Republic Bancorp and WMB 35 15 OCT 51 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.