Correlation Between First Republic and Jeffersonville Bancorp
Can any of the company-specific risk be diversified away by investing in both First Republic and Jeffersonville Bancorp 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 Jeffersonville Bancorp 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 Jeffersonville Bancorp, you can compare the effects of market volatilities on First Republic and Jeffersonville Bancorp 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 Jeffersonville Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Republic and Jeffersonville Bancorp.
Diversification Opportunities for First Republic and Jeffersonville Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Jeffersonville is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Republic Bank and Jeffersonville Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffersonville 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 Jeffersonville Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffersonville Bancorp has no effect on the direction of First Republic i.e., First Republic and Jeffersonville Bancorp go up and down completely randomly.
Pair Corralation between First Republic and Jeffersonville Bancorp
If you would invest 0.50 in First Republic Bank on September 2, 2024 and sell it today you would earn a total of 0.40 from holding First Republic Bank or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.17% |
| Values | Daily Returns |
First Republic Bank vs. Jeffersonville Bancorp
Performance |
| Timeline |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jeffersonville Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Republic and Jeffersonville Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Republic and Jeffersonville Bancorp
The main advantage of trading using opposite First Republic and Jeffersonville Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Republic position performs unexpectedly, Jeffersonville Bancorp 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 Jeffersonville Bancorp will offset losses from the drop in Jeffersonville Bancorp's long position.| First Republic vs. Keurig Dr Pepper | First Republic vs. Aspen Insurance Holdings | First Republic vs. Employers Holdings | First Republic vs. Thai Beverage PCL |
| Jeffersonville Bancorp vs. Heritage NOLA Bancorp | Jeffersonville Bancorp vs. Rhinebeck Bancorp | Jeffersonville Bancorp vs. Bridgewater Bancshares Depositary | Jeffersonville Bancorp vs. Bank of Marin |
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.
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