Correlation Between Republic Bancorp and 632525BB6

Can any of the company-specific risk be diversified away by investing in both Republic Bancorp and 632525BB6 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 632525BB6 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Republic Bancorp and NAB 3347 12 JAN 37, you can compare the effects of market volatilities on Republic Bancorp and 632525BB6 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 632525BB6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Republic Bancorp and 632525BB6.

Diversification Opportunities for Republic Bancorp and 632525BB6

0.81

Correlation Coefficient

Republic Bancorp  632525BB6

Very poor diversification

The 3 months correlation between Republic and 632525BB6 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Republic Bancorp and NAB 3347 12 JAN 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAB 3347 12 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 632525BB6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAB 3347 12 has no effect on the direction of Republic Bancorp i.e., Republic Bancorp and 632525BB6 go up and down completely randomly.

Pair Corralation between Republic Bancorp and 632525BB6

Assuming the 90 days horizon Republic Bancorp is expected to generate 2.36 times more return on investment than 632525BB6. However, Republic Bancorp is 2.36 times more volatile than NAB 3347 12 JAN 37. It trades about 0.09 of its potential returns per unit of risk. NAB 3347 12 JAN 37 is currently generating about -0.38 per unit of risk. If you would invest  6,203  in Republic Bancorp on October 1, 2024 and sell it today you would earn a total of  865.00  from holding Republic Bancorp or generate 13.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	30.16%
Values	Daily Returns

Republic Bancorp  vs.  NAB 3347 12 JAN 37

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.

NAB 3347 12

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NAB 3347 12 JAN 37 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 NAB 3347 12 JAN 37 investors.

Pair Trading with Republic Bancorp and 632525BB6

The main advantage of trading using opposite Republic Bancorp and 632525BB6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Republic Bancorp position performs unexpectedly, 632525BB6 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 632525BB6 will offset losses from the drop in 632525BB6's long position.

The idea behind Republic Bancorp and NAB 3347 12 JAN 37 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.