Correlation Between First Republic and Banc Of
Can any of the company-specific risk be diversified away by investing in both First Republic and Banc Of 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 Banc Of 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 Banc of California,, you can compare the effects of market volatilities on First Republic and Banc Of 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 Banc Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Republic and Banc Of.
Diversification Opportunities for First Republic and Banc Of
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Banc is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding First Republic Bank and Banc of California, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banc of California, 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 Banc Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banc of California, has no effect on the direction of First Republic i.e., First Republic and Banc Of go up and down completely randomly.
Pair Corralation between First Republic and Banc Of
If you would invest 1,421 in Banc of California, on August 28, 2024 and sell it today you would earn a total of 356.00 from holding Banc of California, or generate 25.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
First Republic Bank vs. Banc of California,
Performance |
| Timeline |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Banc of California, |
First Republic and Banc Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Republic and Banc Of
The main advantage of trading using opposite First Republic and Banc Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Republic position performs unexpectedly, Banc Of 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 Banc Of will offset losses from the drop in Banc Of's long position.| First Republic vs. Century Aluminum | First Republic vs. Algoma Steel Group | First Republic vs. Allegheny Technologies Incorporated | First Republic vs. Ryanair Holdings PLC |
| Banc Of vs. Peapack Gladstone Financial | Banc Of vs. Northfield Bancorp | Banc Of vs. Great Southern Bancorp | Banc Of vs. Heritage Financial |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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