Correlation Between Jacobs Solutions and First Republic
Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions 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 Jacobs Solutions and First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Solutions and First Republic Bank, you can compare the effects of market volatilities on Jacobs Solutions 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 Jacobs Solutions with a short position of First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and First Republic.
Diversification Opportunities for Jacobs Solutions and First Republic
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jacobs and First is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions 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 Jacobs Solutions 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 Jacobs Solutions 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 Jacobs Solutions i.e., Jacobs Solutions and First Republic go up and down completely randomly.
Pair Corralation between Jacobs Solutions and First Republic
If you would invest 31.00 in First Republic Bank on August 24, 2024 and sell it today you would earn a total of 0.00 from holding First Republic Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Jacobs Solutions vs. First Republic Bank
Performance |
| Timeline |
| Jacobs Solutions |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jacobs Solutions and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and First Republic
The main advantage of trading using opposite Jacobs Solutions and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions 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.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
| First Republic vs. Neogen | First Republic vs. Teleflex Incorporated | First Republic vs. Eastern Co | First Republic vs. US Global Investors |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |