Correlation Between Phillips and Rubis
Can any of the company-specific risk be diversified away by investing in both Phillips and Rubis 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 Phillips and Rubis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phillips 66 and Rubis, you can compare the effects of market volatilities on Phillips and Rubis 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 Phillips with a short position of Rubis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phillips and Rubis.
Diversification Opportunities for Phillips and Rubis
Good diversification
The 3 months correlation between Phillips and Rubis is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Phillips 66 and Rubis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis and Phillips 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 Phillips 66 are associated (or correlated) with Rubis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubis has no effect on the direction of Phillips i.e., Phillips and Rubis go up and down completely randomly.
Pair Corralation between Phillips and Rubis
If you would invest 2,500 in Rubis on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Rubis or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Phillips 66 vs. Rubis
Performance |
| Timeline |
| Phillips 66 |
| Rubis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Phillips and Rubis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phillips and Rubis
The main advantage of trading using opposite Phillips and Rubis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phillips position performs unexpectedly, Rubis 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 Rubis will offset losses from the drop in Rubis' long position.| Phillips vs. Delek Energy | Phillips vs. Crossamerica Partners LP | Phillips vs. Par Pacific Holdings | Phillips vs. Valvoline |
| Rubis vs. DCC PLC ADR | Rubis vs. Ultrapar Participacoes SA | Rubis vs. Sunoco LP | Rubis vs. HF Sinclair 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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