Correlation Between Old Republic and First Citizens
Can any of the company-specific risk be diversified away by investing in both Old Republic and First Citizens 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 Old Republic and First Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Republic International and The First Citizens, you can compare the effects of market volatilities on Old Republic and First Citizens 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 Old Republic with a short position of First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Republic and First Citizens.
Diversification Opportunities for Old Republic and First Citizens
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Old and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Old Republic International and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and Old 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 Old Republic International are associated (or correlated) with First Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Citizens has no effect on the direction of Old Republic i.e., Old Republic and First Citizens go up and down completely randomly.
Pair Corralation between Old Republic and First Citizens
Considering the 90-day investment horizon Old Republic International is expected to generate 615.42 times more return on investment than First Citizens. However, Old Republic is 615.42 times more volatile than The First Citizens. It trades about 0.11 of its potential returns per unit of risk. The First Citizens is currently generating about 0.11 per unit of risk. If you would invest 2,846 in Old Republic International on September 4, 2024 and sell it today you would earn a total of 997.00 from holding Old Republic International or generate 35.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 27.53% |
| Values | Daily Returns |
Old Republic International vs. The First Citizens
Performance |
| Timeline |
| Old Republic Interna |
| First Citizens |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Old Republic and First Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Republic and First Citizens
The main advantage of trading using opposite Old Republic and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Republic position performs unexpectedly, First Citizens 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 Citizens will offset losses from the drop in First Citizens' long position.| Old Republic vs. Progressive Corp | Old Republic vs. Cincinnati Financial | Old Republic vs. W R Berkley | Old Republic vs. The Allstate |
| First Citizens vs. The Gap, | First Citizens vs. Old Republic International | First Citizens vs. Siriuspoint | First Citizens vs. QBE Insurance Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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