Correlation Between Republic Bancorp and 6325C0EA5

Can any of the company-specific risk be diversified away by investing in both Republic Bancorp and 6325C0EA5 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 6325C0EA5 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 4891583 12 JAN 25, you can compare the effects of market volatilities on Republic Bancorp and 6325C0EA5 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 6325C0EA5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Republic Bancorp and 6325C0EA5.

Diversification Opportunities for Republic Bancorp and 6325C0EA5

-0.08

Correlation Coefficient

Republic Bancorp  6325C0EA5

Good diversification

The 3 months correlation between Republic and 6325C0EA5 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Republic Bancorp and NAB 4891583 12 JAN 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAB 4891583 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 6325C0EA5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAB 4891583 12 has no effect on the direction of Republic Bancorp i.e., Republic Bancorp and 6325C0EA5 go up and down completely randomly.

Pair Corralation between Republic Bancorp and 6325C0EA5

Assuming the 90 days horizon Republic Bancorp is expected to generate 8.16 times more return on investment than 6325C0EA5. However, Republic Bancorp is 8.16 times more volatile than NAB 4891583 12 JAN 25. It trades about 0.06 of its potential returns per unit of risk. NAB 4891583 12 JAN 25 is currently generating about -0.25 per unit of risk. If you would invest  6,796  in Republic Bancorp on September 22, 2024 and sell it today you would earn a total of  375.00  from holding Republic Bancorp or generate 5.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	37.21%
Values	Daily Returns

Republic Bancorp  vs.  NAB 4891583 12 JAN 25

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.

NAB 4891583 12

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NAB 4891583 12 JAN 25 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, 6325C0EA5 is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Republic Bancorp and 6325C0EA5

The main advantage of trading using opposite Republic Bancorp and 6325C0EA5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Republic Bancorp position performs unexpectedly, 6325C0EA5 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 6325C0EA5 will offset losses from the drop in 6325C0EA5's long position.

The idea behind Republic Bancorp and NAB 4891583 12 JAN 25 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.