Correlation Between PGE Corp and First Republic
Can any of the company-specific risk be diversified away by investing in both PGE Corp 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 PGE Corp and First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGE Corp and First Republic Bank, you can compare the effects of market volatilities on PGE Corp 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 PGE Corp with a short position of First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGE Corp and First Republic.
Diversification Opportunities for PGE Corp and First Republic
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PGE and First is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding PGE Corp 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 PGE Corp 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 PGE Corp 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 PGE Corp i.e., PGE Corp and First Republic go up and down completely randomly.
Pair Corralation between PGE Corp and First Republic
If you would invest 1,577 in PGE Corp on September 4, 2024 and sell it today you would earn a total of 478.00 from holding PGE Corp or generate 30.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.34% |
| Values | Daily Returns |
PGE Corp vs. First Republic Bank
Performance |
| Timeline |
| PGE Corp |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PGE Corp and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGE Corp and First Republic
The main advantage of trading using opposite PGE Corp and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGE Corp 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.| PGE Corp vs. Consolidated Edison | PGE Corp vs. Southern Company | PGE Corp vs. Entergy | PGE Corp vs. Pinnacle West Capital |
| First Republic vs. Sonos Inc | First Republic vs. JD Sports Fashion | First Republic vs. TFI International | First Republic vs. Stepan Company |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |