Correlation Between First Republic and AMCON Distributing
Can any of the company-specific risk be diversified away by investing in both First Republic and AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing, you can compare the effects of market volatilities on First Republic and AMCON Distributing 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 AMCON Distributing. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Republic and AMCON Distributing.
Diversification Opportunities for First Republic and AMCON Distributing
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and AMCON is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding First Republic Bank and AMCON Distributing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMCON Distributing 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 AMCON Distributing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMCON Distributing has no effect on the direction of First Republic i.e., First Republic and AMCON Distributing go up and down completely randomly.
Pair Corralation between First Republic and AMCON Distributing
If you would invest 13,963 in AMCON Distributing on September 1, 2024 and sell it today you would lose (556.00) from holding AMCON Distributing or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
First Republic Bank vs. AMCON Distributing
Performance |
| Timeline |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AMCON Distributing |
First Republic and AMCON Distributing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Republic and AMCON Distributing
The main advantage of trading using opposite First Republic and AMCON Distributing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Republic position performs unexpectedly, AMCON Distributing 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 AMCON Distributing will offset losses from the drop in AMCON Distributing's long position.| First Republic vs. MACOM Technology Solutions | First Republic vs. Elmos Semiconductor SE | First Republic vs. NioCorp Developments Ltd | First Republic vs. Eldorado Gold Corp |
| AMCON Distributing vs. The Chefs Warehouse | AMCON Distributing vs. G Willi Food International | AMCON Distributing vs. SpartanNash Co | AMCON Distributing vs. Calavo Growers |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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