Correlation Between East West and Rubicon Technology
Can any of the company-specific risk be diversified away by investing in both East West and Rubicon Technology 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 East West and Rubicon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East West Bancorp and Rubicon Technology, you can compare the effects of market volatilities on East West and Rubicon Technology 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 East West with a short position of Rubicon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of East West and Rubicon Technology.
Diversification Opportunities for East West and Rubicon Technology
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between East and Rubicon is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding East West Bancorp and Rubicon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubicon Technology and East West 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 East West Bancorp are associated (or correlated) with Rubicon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubicon Technology has no effect on the direction of East West i.e., East West and Rubicon Technology go up and down completely randomly.
Pair Corralation between East West and Rubicon Technology
If you would invest 9,549 in East West Bancorp on November 4, 2024 and sell it today you would earn a total of 748.00 from holding East West Bancorp or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
East West Bancorp vs. Rubicon Technology
Performance |
| Timeline |
| East West Bancorp |
| Rubicon Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
East West and Rubicon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East West and Rubicon Technology
The main advantage of trading using opposite East West and Rubicon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East West position performs unexpectedly, Rubicon Technology 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 Rubicon Technology will offset losses from the drop in Rubicon Technology's long position.| East West vs. US Bancorp | East West vs. Truist Financial Corp | East West vs. KeyCorp | East West vs. Citizens Financial Group, |
| Rubicon Technology vs. Axcelis Technologies | Rubicon Technology vs. inTest | Rubicon Technology vs. Lam Research Corp | Rubicon Technology vs. Photronics |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |