Correlation Between Old Republic and RJK Explorations
Can any of the company-specific risk be diversified away by investing in both Old Republic and RJK Explorations 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 Old Republic and RJK Explorations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Republic International and RJK Explorations, you can compare the effects of market volatilities on Old Republic and RJK Explorations 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 Old Republic with a short position of RJK Explorations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Republic and RJK Explorations.
Diversification Opportunities for Old Republic and RJK Explorations
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Old and RJK is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Old Republic International and RJK Explorations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RJK Explorations and Old Republic 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 Old Republic International are associated (or correlated) with RJK Explorations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RJK Explorations has no effect on the direction of Old Republic i.e., Old Republic and RJK Explorations go up and down completely randomly.
Pair Corralation between Old Republic and RJK Explorations
Considering the 90-day investment horizon Old Republic is expected to generate 23.93 times less return on investment than RJK Explorations. But when comparing it to its historical volatility, Old Republic International is 22.53 times less risky than RJK Explorations. It trades about 0.09 of its potential returns per unit of risk. RJK Explorations is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4.50 in RJK Explorations on September 14, 2024 and sell it today you would earn a total of 0.50 from holding RJK Explorations or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Old Republic International vs. RJK Explorations
Performance |
| Timeline |
| Old Republic Interna |
| RJK Explorations |
Old Republic and RJK Explorations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Republic and RJK Explorations
The main advantage of trading using opposite Old Republic and RJK Explorations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Republic position performs unexpectedly, RJK Explorations 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 RJK Explorations will offset losses from the drop in RJK Explorations' long position.| Old Republic vs. Axa Equitable Holdings | Old Republic vs. American International Group | Old Republic vs. Arch Capital Group | Old Republic vs. Sun Life Financial |
| RJK Explorations vs. Gold79 Mines | RJK Explorations vs. Arctic Star Exploration | RJK Explorations vs. Arras Minerals Corp | RJK Explorations vs. American Creek Resources |
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 | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |