Correlation Between CCL Industries and Rubellite Energy
Can any of the company-specific risk be diversified away by investing in both CCL Industries and Rubellite Energy 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 CCL Industries and Rubellite Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCL Industries and Rubellite Energy, you can compare the effects of market volatilities on CCL Industries and Rubellite Energy 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 CCL Industries with a short position of Rubellite Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCL Industries and Rubellite Energy.
Diversification Opportunities for CCL Industries and Rubellite Energy
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CCL and Rubellite is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding CCL Industries and Rubellite Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubellite Energy and CCL Industries 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 CCL Industries are associated (or correlated) with Rubellite Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubellite Energy has no effect on the direction of CCL Industries i.e., CCL Industries and Rubellite Energy go up and down completely randomly.
Pair Corralation between CCL Industries and Rubellite Energy
Assuming the 90 days trading horizon CCL Industries is expected to generate 0.47 times more return on investment than Rubellite Energy. However, CCL Industries is 2.13 times less risky than Rubellite Energy. It trades about 0.09 of its potential returns per unit of risk. Rubellite Energy is currently generating about 0.0 per unit of risk. If you would invest 6,922 in CCL Industries on August 30, 2024 and sell it today you would earn a total of 877.00 from holding CCL Industries or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCL Industries vs. Rubellite Energy
Performance |
| Timeline |
| CCL Industries |
| Rubellite Energy |
CCL Industries and Rubellite Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCL Industries and Rubellite Energy
The main advantage of trading using opposite CCL Industries and Rubellite Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCL Industries position performs unexpectedly, Rubellite Energy 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 Rubellite Energy will offset losses from the drop in Rubellite Energy's long position.| CCL Industries vs. CCL Industries | CCL Industries vs. Quebecor | CCL Industries vs. Winpak | CCL Industries vs. Restaurant Brands International |
| Rubellite Energy vs. Headwater Exploration | Rubellite Energy vs. Spartan Delta Corp | Rubellite Energy vs. Pine Cliff Energy | Rubellite Energy vs. Journey Energy |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |