Correlation Between Fossil and First Republic
Can any of the company-specific risk be diversified away by investing in both Fossil and First Republic 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 Fossil and First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fossil Group and First Republic Bank, you can compare the effects of market volatilities on Fossil and First Republic 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 Fossil with a short position of First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fossil and First Republic.
Diversification Opportunities for Fossil and First Republic
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fossil and First is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fossil Group and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank and Fossil 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 Fossil Group are associated (or correlated) with First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Fossil i.e., Fossil and First Republic go up and down completely randomly.
Pair Corralation between Fossil and First Republic
If you would invest 132.00 in Fossil Group on September 4, 2024 and sell it today you would earn a total of 103.00 from holding Fossil Group or generate 78.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fossil Group vs. First Republic Bank
Performance |
| Timeline |
| Fossil Group |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fossil and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fossil and First Republic
The main advantage of trading using opposite Fossil and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fossil position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| Fossil vs. VF Corporation | Fossil vs. Levi Strauss Co | Fossil vs. Under Armour A | Fossil vs. Columbia Sportswear |
| First Republic vs. Ambev SA ADR | First Republic vs. Life Time Group | First Republic vs. Emerson Radio | First Republic vs. Playa Hotels Resorts |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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