Correlation Between First Republic and John Marshall
Can any of the company-specific risk be diversified away by investing in both First Republic and John Marshall 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 John Marshall 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 John Marshall Bancorp, you can compare the effects of market volatilities on First Republic and John Marshall 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 John Marshall. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Republic and John Marshall.
Diversification Opportunities for First Republic and John Marshall
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and John is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding First Republic Bank and John Marshall Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Marshall 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 John Marshall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Marshall Bancorp has no effect on the direction of First Republic i.e., First Republic and John Marshall go up and down completely randomly.
Pair Corralation between First Republic and John Marshall
If you would invest 1,699 in John Marshall Bancorp on August 29, 2024 and sell it today you would earn a total of 610.00 from holding John Marshall Bancorp or generate 35.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
First Republic Bank vs. John Marshall Bancorp
Performance |
| Timeline |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| John Marshall Bancorp |
First Republic and John Marshall Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Republic and John Marshall
The main advantage of trading using opposite First Republic and John Marshall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Republic position performs unexpectedly, John Marshall 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 John Marshall will offset losses from the drop in John Marshall's long position.| First Republic vs. AMCON Distributing | First Republic vs. Radcom | First Republic vs. Marfrig Global Foods | First Republic vs. Kandi Technologies Group |
| John Marshall vs. Home Federal Bancorp | John Marshall vs. Magyar Bancorp | John Marshall vs. ChoiceOne Financial Services | John Marshall vs. Affinity Bancshares |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |