Correlation Between First Republic and Luxfer Holdings
Can any of the company-specific risk be diversified away by investing in both First Republic and Luxfer Holdings 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 Luxfer Holdings 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 Luxfer Holdings PLC, you can compare the effects of market volatilities on First Republic and Luxfer Holdings 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 Luxfer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Republic and Luxfer Holdings.
Diversification Opportunities for First Republic and Luxfer Holdings
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Luxfer is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding First Republic Bank and Luxfer Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luxfer Holdings PLC 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 Luxfer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luxfer Holdings PLC has no effect on the direction of First Republic i.e., First Republic and Luxfer Holdings go up and down completely randomly.
Pair Corralation between First Republic and Luxfer Holdings
If you would invest 1,144 in Luxfer Holdings PLC on September 2, 2024 and sell it today you would earn a total of 292.00 from holding Luxfer Holdings PLC or generate 25.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
First Republic Bank vs. Luxfer Holdings PLC
Performance |
| Timeline |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Luxfer Holdings PLC |
First Republic and Luxfer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Republic and Luxfer Holdings
The main advantage of trading using opposite First Republic and Luxfer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Republic position performs unexpectedly, Luxfer Holdings 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 Luxfer Holdings will offset losses from the drop in Luxfer Holdings' long position.| First Republic vs. Bassett Furniture Industries | First Republic vs. Apogee Enterprises | First Republic vs. Mid Atlantic Home Health | First Republic vs. Franklin Street Properties |
| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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