Correlation Between One Gas and RGC Resources
Can any of the company-specific risk be diversified away by investing in both One Gas and RGC Resources 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 One Gas and RGC Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Gas and RGC Resources, you can compare the effects of market volatilities on One Gas and RGC Resources 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 One Gas with a short position of RGC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Gas and RGC Resources.
Diversification Opportunities for One Gas and RGC Resources
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between One and RGC is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding One Gas and RGC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RGC Resources and One Gas 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 One Gas are associated (or correlated) with RGC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RGC Resources has no effect on the direction of One Gas i.e., One Gas and RGC Resources go up and down completely randomly.
Pair Corralation between One Gas and RGC Resources
Considering the 90-day investment horizon One Gas is expected to generate 0.46 times more return on investment than RGC Resources. However, One Gas is 2.16 times less risky than RGC Resources. It trades about 0.19 of its potential returns per unit of risk. RGC Resources is currently generating about 0.07 per unit of risk. If you would invest 7,305 in One Gas on August 27, 2024 and sell it today you would earn a total of 482.00 from holding One Gas or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Gas vs. RGC Resources
Performance |
| Timeline |
| One Gas |
| RGC Resources |
One Gas and RGC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Gas and RGC Resources
The main advantage of trading using opposite One Gas and RGC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Gas position performs unexpectedly, RGC Resources 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 RGC Resources will offset losses from the drop in RGC Resources' long position.| One Gas vs. Northwest Natural Gas | One Gas vs. Chesapeake Utilities | One Gas vs. NewJersey Resources | One Gas vs. RGC Resources |
| RGC Resources vs. NewJersey Resources | RGC Resources vs. One Gas | RGC Resources vs. Northwest Natural Gas | RGC Resources vs. Chesapeake Utilities |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |