Correlation Between AMTD Digital and Rumble
Can any of the company-specific risk be diversified away by investing in both AMTD Digital and Rumble 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 AMTD Digital and Rumble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMTD Digital and Rumble Inc, you can compare the effects of market volatilities on AMTD Digital and Rumble 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 AMTD Digital with a short position of Rumble. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMTD Digital and Rumble.
Diversification Opportunities for AMTD Digital and Rumble
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMTD and Rumble is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding AMTD Digital and Rumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rumble Inc and AMTD Digital 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 AMTD Digital are associated (or correlated) with Rumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rumble Inc has no effect on the direction of AMTD Digital i.e., AMTD Digital and Rumble go up and down completely randomly.
Pair Corralation between AMTD Digital and Rumble
Considering the 90-day investment horizon AMTD Digital is expected to under-perform the Rumble. In addition to that, AMTD Digital is 2.09 times more volatile than Rumble Inc. It trades about 0.0 of its total potential returns per unit of risk. Rumble Inc is currently generating about 0.02 per unit of volatility. If you would invest 759.00 in Rumble Inc on August 24, 2024 and sell it today you would lose (110.00) from holding Rumble Inc or give up 14.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMTD Digital vs. Rumble Inc
Performance |
| Timeline |
| AMTD Digital |
| Rumble Inc |
AMTD Digital and Rumble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMTD Digital and Rumble
The main advantage of trading using opposite AMTD Digital and Rumble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMTD Digital position performs unexpectedly, Rumble 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 Rumble will offset losses from the drop in Rumble's long position.| AMTD Digital vs. Porch Group | AMTD Digital vs. Nerdy Inc | AMTD Digital vs. Wag Group Co | AMTD Digital vs. Dave Warrants |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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