Correlation Between IShares Trust and First Republic
Can any of the company-specific risk be diversified away by investing in both IShares Trust and First Republic 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 IShares Trust and First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and First Republic Bank, you can compare the effects of market volatilities on IShares Trust and First Republic 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 IShares Trust with a short position of First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and First Republic.
Diversification Opportunities for IShares Trust and First Republic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank and IShares Trust 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 iShares Trust are associated (or correlated) with First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of IShares Trust i.e., IShares Trust and First Republic go up and down completely randomly.
Pair Corralation between IShares Trust and First Republic
If you would invest 139,619 in iShares Trust on September 2, 2024 and sell it today you would earn a total of 44,368 from holding iShares Trust or generate 31.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
iShares Trust vs. First Republic Bank
Performance |
| Timeline |
| iShares Trust |
| First Republic Bank |
IShares Trust and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and First Republic
The main advantage of trading using opposite IShares Trust and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| IShares Trust vs. Promotora y Operadora | IShares Trust vs. UnitedHealth Group Incorporated | IShares Trust vs. Qulitas Controladora SAB | IShares Trust vs. Hoteles City Express |
| First Republic vs. Grupo Financiero Banorte | First Republic vs. Grupo Financiero Inbursa | First Republic vs. Banco del Bajo |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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