Correlation Between Rainbow Robotics and Booster
Can any of the company-specific risk be diversified away by investing in both Rainbow Robotics and Booster 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 Rainbow Robotics and Booster into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rainbow Robotics and Booster Co, you can compare the effects of market volatilities on Rainbow Robotics and Booster 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 Rainbow Robotics with a short position of Booster. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rainbow Robotics and Booster.
Diversification Opportunities for Rainbow Robotics and Booster
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rainbow and Booster is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Rainbow Robotics and Booster Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booster and Rainbow Robotics 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 Rainbow Robotics are associated (or correlated) with Booster. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booster has no effect on the direction of Rainbow Robotics i.e., Rainbow Robotics and Booster go up and down completely randomly.
Pair Corralation between Rainbow Robotics and Booster
Assuming the 90 days trading horizon Rainbow Robotics is expected to generate 4.14 times more return on investment than Booster. However, Rainbow Robotics is 4.14 times more volatile than Booster Co. It trades about 0.2 of its potential returns per unit of risk. Booster Co is currently generating about 0.09 per unit of risk. If you would invest 11,350,000 in Rainbow Robotics on November 3, 2024 and sell it today you would earn a total of 18,600,000 from holding Rainbow Robotics or generate 163.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rainbow Robotics vs. Booster Co
Performance |
| Timeline |
| Rainbow Robotics |
| Booster |
Rainbow Robotics and Booster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rainbow Robotics and Booster
The main advantage of trading using opposite Rainbow Robotics and Booster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rainbow Robotics position performs unexpectedly, Booster 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 Booster will offset losses from the drop in Booster's long position.| Rainbow Robotics vs. Raontech | Rainbow Robotics vs. V One Tech Co | Rainbow Robotics vs. Lion Chemtech Co | Rainbow Robotics vs. PNC Technologies co |
| Booster vs. Rainbow Robotics | Booster vs. COWINTECH Co | Booster vs. CS BEARING CoLtd | Booster vs. Young Poong Precision |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |