Correlation Between First Republic and Civista Bancshares
Can any of the company-specific risk be diversified away by investing in both First Republic and Civista Bancshares 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 Civista Bancshares 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 Civista Bancshares, you can compare the effects of market volatilities on First Republic and Civista Bancshares 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 Civista Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Republic and Civista Bancshares.
Diversification Opportunities for First Republic and Civista Bancshares
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Civista is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding First Republic Bank and Civista Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civista Bancshares 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 Civista Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civista Bancshares has no effect on the direction of First Republic i.e., First Republic and Civista Bancshares go up and down completely randomly.
Pair Corralation between First Republic and Civista Bancshares
If you would invest 1,835 in Civista Bancshares on August 27, 2024 and sell it today you would earn a total of 488.00 from holding Civista Bancshares or generate 26.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
First Republic Bank vs. Civista Bancshares
Performance |
| Timeline |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Civista Bancshares |
First Republic and Civista Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Republic and Civista Bancshares
The main advantage of trading using opposite First Republic and Civista Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Republic position performs unexpectedly, Civista Bancshares 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 Civista Bancshares will offset losses from the drop in Civista Bancshares' long position.| First Republic vs. Abcellera Biologics | First Republic vs. EvoAir Holdings | First Republic vs. Tarsus Pharmaceuticals | First Republic vs. AerSale Corp |
| Civista Bancshares vs. Fifth Third Bancorp | Civista Bancshares vs. Zions Bancorporation | Civista Bancshares vs. Huntington Bancshares Incorporated | Civista Bancshares vs. Comerica |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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