Correlation Between Jyske Bank and First Republic
Can any of the company-specific risk be diversified away by investing in both Jyske Bank 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 Jyske Bank and First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jyske Bank AS and First Republic Bank, you can compare the effects of market volatilities on Jyske Bank 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 Jyske Bank with a short position of First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and First Republic.
Diversification Opportunities for Jyske Bank and First Republic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jyske and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS 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 Jyske Bank 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 Jyske Bank AS 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 Jyske Bank i.e., Jyske Bank and First Republic go up and down completely randomly.
Pair Corralation between Jyske Bank and First Republic
Assuming the 90 days horizon Jyske Bank AS is expected to generate 0.13 times more return on investment than First Republic. However, Jyske Bank AS is 7.97 times less risky than First Republic. It trades about 0.04 of its potential returns per unit of risk. First Republic Bank is currently generating about -0.12 per unit of risk. If you would invest 5,509 in Jyske Bank AS on September 3, 2024 and sell it today you would earn a total of 2,141 from holding Jyske Bank AS or generate 38.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 30.51% |
| Values | Daily Returns |
Jyske Bank AS vs. First Republic Bank
Performance |
| Timeline |
| Jyske Bank AS |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jyske Bank and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and First Republic
The main advantage of trading using opposite Jyske Bank and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank 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.The idea behind Jyske Bank AS and First Republic Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| First Republic vs. Western Digital | First Republic vs. Dine Brands Global | First Republic vs. FARO Technologies | First Republic vs. Allient |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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