Correlation Between Rumble and 361448AU7

Can any of the company-specific risk be diversified away by investing in both Rumble and 361448AU7 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 Rumble and 361448AU7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Rumble Inc and GATX P 52, you can compare the effects of market volatilities on Rumble and 361448AU7 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 Rumble with a short position of 361448AU7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rumble and 361448AU7.

Diversification Opportunities for Rumble and 361448AU7

0.2

Correlation Coefficient

Rumble  361448AU7

Modest diversification

The 3 months correlation between Rumble and 361448AU7 is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Rumble Inc and GATX P 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GATX P 52 and Rumble 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 Rumble Inc are associated (or correlated) with 361448AU7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GATX P 52 has no effect on the direction of Rumble i.e., Rumble and 361448AU7 go up and down completely randomly.

Pair Corralation between Rumble and 361448AU7

Considering the 90-day investment horizon Rumble Inc is expected to generate 2.43 times more return on investment than 361448AU7. However, Rumble is 2.43 times more volatile than GATX P 52. It trades about 0.01 of its potential returns per unit of risk. GATX P 52 is currently generating about -0.01 per unit of risk. If you would invest  1,018  in Rumble Inc on August 31, 2024 and sell it today you would lose (305.00) from holding Rumble Inc or give up 29.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	28.93%
Values	Daily Returns

Rumble Inc  vs.  GATX P 52

Rumble Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Rumble Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Rumble displayed solid returns over the last few months and may actually be approaching a breakup point.

GATX P 52

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GATX P 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for GATX P 52 investors.

Pair Trading with Rumble and 361448AU7

The main advantage of trading using opposite Rumble and 361448AU7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rumble position performs unexpectedly, 361448AU7 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 361448AU7 will offset losses from the drop in 361448AU7's long position.

The idea behind Rumble Inc and GATX P 52 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.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.