Correlation Between Searchlight Solutions and Republic Bancorp
Can any of the company-specific risk be diversified away by investing in both Searchlight Solutions and Republic Bancorp 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 Searchlight Solutions and Republic Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Searchlight Solutions and Republic Bancorp, you can compare the effects of market volatilities on Searchlight Solutions and Republic Bancorp 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 Searchlight Solutions with a short position of Republic Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Searchlight Solutions and Republic Bancorp.
Diversification Opportunities for Searchlight Solutions and Republic Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Searchlight and Republic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Searchlight Solutions and Republic Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Republic Bancorp and Searchlight 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 Searchlight Solutions are associated (or correlated) with Republic Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Republic Bancorp has no effect on the direction of Searchlight Solutions i.e., Searchlight Solutions and Republic Bancorp go up and down completely randomly.
Pair Corralation between Searchlight Solutions and Republic Bancorp
If you would invest 0.00 in Searchlight Solutions on September 23, 2024 and sell it today you would earn a total of 0.00 from holding Searchlight Solutions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Searchlight Solutions vs. Republic Bancorp
Performance |
| Timeline |
| Searchlight Solutions |
| Republic Bancorp |
Searchlight Solutions and Republic Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Searchlight Solutions and Republic Bancorp
The main advantage of trading using opposite Searchlight Solutions and Republic Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Searchlight Solutions position performs unexpectedly, Republic Bancorp 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 Republic Bancorp will offset losses from the drop in Republic Bancorp's long position.| Searchlight Solutions vs. Information Services Group | Searchlight Solutions vs. Home Bancorp | Searchlight Solutions vs. Heritage Financial | Searchlight Solutions vs. CRA International |
| Republic Bancorp vs. First Community | Republic Bancorp vs. Community West Bancshares | Republic Bancorp vs. First Financial Northwest | Republic Bancorp vs. First Northwest Bancorp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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