Correlation Between First Republic and Great Southern
Can any of the company-specific risk be diversified away by investing in both First Republic and Great Southern 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 Great Southern 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 Great Southern Bancorp, you can compare the effects of market volatilities on First Republic and Great Southern 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 Great Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Republic and Great Southern.
Diversification Opportunities for First Republic and Great Southern
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Great is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Republic Bank and Great Southern Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Southern Bancorp 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 Great Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Southern Bancorp has no effect on the direction of First Republic i.e., First Republic and Great Southern go up and down completely randomly.
Pair Corralation between First Republic and Great Southern
If you would invest 5,328 in Great Southern Bancorp on November 9, 2024 and sell it today you would earn a total of 738.00 from holding Great Southern Bancorp or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
First Republic Bank vs. Great Southern Bancorp
Performance |
| Timeline |
| First Republic Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Great Southern Bancorp |
First Republic and Great Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Republic and Great Southern
The main advantage of trading using opposite First Republic and Great Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Republic position performs unexpectedly, Great Southern 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 Great Southern will offset losses from the drop in Great Southern's long position.| First Republic vs. Cameco Corp | First Republic vs. Aspen Technology | First Republic vs. Eldorado Gold Corp | First Republic vs. Life360, Common Stock |
| Great Southern vs. First Northwest Bancorp | Great Southern vs. Community West Bancshares | Great Southern vs. First Financial Northwest | Great Southern vs. First Capital |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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