Correlation Between Maximus and RB Global
Can any of the company-specific risk be diversified away by investing in both Maximus and RB Global 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 Maximus and RB Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maximus and RB Global, you can compare the effects of market volatilities on Maximus and RB Global 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 Maximus with a short position of RB Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maximus and RB Global.
Diversification Opportunities for Maximus and RB Global
Pay attention - limited upside
The 3 months correlation between Maximus and RBA is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Maximus and RB Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RB Global and Maximus 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 Maximus are associated (or correlated) with RB Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RB Global has no effect on the direction of Maximus i.e., Maximus and RB Global go up and down completely randomly.
Pair Corralation between Maximus and RB Global
Considering the 90-day investment horizon Maximus is expected to under-perform the RB Global. In addition to that, Maximus is 1.82 times more volatile than RB Global. It trades about -0.29 of its total potential returns per unit of risk. RB Global is currently generating about 0.42 per unit of volatility. If you would invest 8,609 in RB Global on August 29, 2024 and sell it today you would earn a total of 1,170 from holding RB Global or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maximus vs. RB Global
Performance |
| Timeline |
| Maximus |
| RB Global |
Maximus and RB Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maximus and RB Global
The main advantage of trading using opposite Maximus and RB Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maximus position performs unexpectedly, RB Global 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 RB Global will offset losses from the drop in RB Global's long position.| Maximus vs. Network 1 Technologies | Maximus vs. First Advantage Corp | Maximus vs. BrightView Holdings | Maximus vs. Civeo Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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