Correlation Between Equity Bancshares, and Republic Bancorp
Can any of the company-specific risk be diversified away by investing in both Equity Bancshares, and Republic Bancorp 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 Equity Bancshares, and Republic Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equity Bancshares, and Republic Bancorp, you can compare the effects of market volatilities on Equity Bancshares, and Republic Bancorp 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 Equity Bancshares, with a short position of Republic Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equity Bancshares, and Republic Bancorp.
Diversification Opportunities for Equity Bancshares, and Republic Bancorp
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Equity and Republic is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Equity Bancshares, and Republic Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Republic Bancorp and Equity Bancshares, 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 Equity Bancshares, are associated (or correlated) with Republic Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Republic Bancorp has no effect on the direction of Equity Bancshares, i.e., Equity Bancshares, and Republic Bancorp go up and down completely randomly.
Pair Corralation between Equity Bancshares, and Republic Bancorp
Given the investment horizon of 90 days Equity Bancshares, is expected to generate 1.64 times less return on investment than Republic Bancorp. In addition to that, Equity Bancshares, is 1.07 times more volatile than Republic Bancorp. It trades about 0.04 of its total potential returns per unit of risk. Republic Bancorp is currently generating about 0.07 per unit of volatility. If you would invest 4,110 in Republic Bancorp on August 27, 2024 and sell it today you would earn a total of 3,652 from holding Republic Bancorp or generate 88.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equity Bancshares, vs. Republic Bancorp
Performance |
| Timeline |
| Equity Bancshares, |
| Republic Bancorp |
Equity Bancshares, and Republic Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equity Bancshares, and Republic Bancorp
The main advantage of trading using opposite Equity Bancshares, and Republic Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equity Bancshares, position performs unexpectedly, Republic Bancorp 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 Republic Bancorp will offset losses from the drop in Republic Bancorp's long position.| Equity Bancshares, vs. Brookline Bancorp | Equity Bancshares, vs. Kearny Financial Corp | Equity Bancshares, vs. Heritage Financial | Equity Bancshares, vs. FVCBankcorp |
| Republic Bancorp vs. First Community | Republic Bancorp vs. Community West Bancshares | Republic Bancorp vs. First Financial Northwest | Republic Bancorp vs. First Northwest Bancorp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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