Correlation Between First Republic and Neogen
Can any of the company-specific risk be diversified away by investing in both First Republic and Neogen 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 First Republic and Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Republic Bank and Neogen, you can compare the effects of market volatilities on First Republic and Neogen 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 First Republic with a short position of Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Republic and Neogen.
Diversification Opportunities for First Republic and Neogen
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Neogen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding First Republic Bank and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen and First Republic 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 First Republic Bank are associated (or correlated) with Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of First Republic i.e., First Republic and Neogen go up and down completely randomly.
Pair Corralation between First Republic and Neogen
If you would invest 1,405 in Neogen on August 28, 2024 and sell it today you would earn a total of 126.00 from holding Neogen or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
First Republic Bank vs. Neogen
Performance |
| Timeline |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Neogen |
First Republic and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Republic and Neogen
The main advantage of trading using opposite First Republic and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Republic position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| First Republic vs. Old Dominion Freight | First Republic vs. Portillos | First Republic vs. Afya | First Republic vs. Park Hotels Resorts |
| Neogen vs. EUDA Health Holdings | Neogen vs. Nutex Health | Neogen vs. Healthcare Triangle | Neogen vs. Mangoceuticals, Common Stock |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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