Correlation Between Republic Bancorp and MASSMU

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

By analyzing existing cross correlation between Republic Bancorp and MASSMU 5077 15 FEB 69, you can compare the effects of market volatilities on Republic Bancorp and MASSMU 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 MASSMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Republic Bancorp and MASSMU.

Diversification Opportunities for Republic Bancorp and MASSMU

0.12

Correlation Coefficient

Republic Bancorp  MASSMU

Average diversification

The 3 months correlation between Republic and MASSMU is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Republic Bancorp and MASSMU 5077 15 FEB 69 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MASSMU 5077 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 MASSMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MASSMU 5077 15 has no effect on the direction of Republic Bancorp i.e., Republic Bancorp and MASSMU go up and down completely randomly.

Pair Corralation between Republic Bancorp and MASSMU

Assuming the 90 days horizon Republic Bancorp is expected to generate 1.58 times more return on investment than MASSMU. However, Republic Bancorp is 1.58 times more volatile than MASSMU 5077 15 FEB 69. It trades about 0.08 of its potential returns per unit of risk. MASSMU 5077 15 FEB 69 is currently generating about -0.16 per unit of risk. If you would invest  6,388  in Republic Bancorp on September 27, 2024 and sell it today you would earn a total of  784.00  from holding Republic Bancorp or generate 12.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	21.88%
Values	Daily Returns

Republic Bancorp  vs.  MASSMU 5077 15 FEB 69

Republic Bancorp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Republic Bancorp are ranked lower than 6 (%) 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.

MASSMU 5077 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MASSMU 5077 15 FEB 69 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 MASSMU 5077 15 FEB 69 investors.

Pair Trading with Republic Bancorp and MASSMU

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

The idea behind Republic Bancorp and MASSMU 5077 15 FEB 69 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.