Correlation Between Republic Bancorp and ENIIM

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

By analyzing existing cross correlation between Republic Bancorp and ENIIM 425 09 MAY 29, you can compare the effects of market volatilities on Republic Bancorp and ENIIM 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 ENIIM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Republic Bancorp and ENIIM.

Diversification Opportunities for Republic Bancorp and ENIIM

0.22

Correlation Coefficient

Republic Bancorp  ENIIM

Modest diversification

The 3 months correlation between Republic and ENIIM is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Republic Bancorp and ENIIM 425 09 MAY 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENIIM 425 09 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 ENIIM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENIIM 425 09 has no effect on the direction of Republic Bancorp i.e., Republic Bancorp and ENIIM go up and down completely randomly.

Pair Corralation between Republic Bancorp and ENIIM

Assuming the 90 days horizon Republic Bancorp is expected to generate 0.75 times more return on investment than ENIIM. However, Republic Bancorp is 1.33 times less risky than ENIIM. It trades about -0.19 of its potential returns per unit of risk. ENIIM 425 09 MAY 29 is currently generating about -0.35 per unit of risk. If you would invest  7,584  in Republic Bancorp on September 29, 2024 and sell it today you would lose (516.00) from holding Republic Bancorp or give up 6.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	55.0%
Values	Daily Returns

Republic Bancorp  vs.  ENIIM 425 09 MAY 29

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.

ENIIM 425 09

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ENIIM 425 09 MAY 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for ENIIM 425 09 MAY 29 investors.

Pair Trading with Republic Bancorp and ENIIM

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

The idea behind Republic Bancorp and ENIIM 425 09 MAY 29 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.