Correlation Between RBC Bearings and ESGEN Acquisition
Can any of the company-specific risk be diversified away by investing in both RBC Bearings and ESGEN Acquisition 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 RBC Bearings and ESGEN Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RBC Bearings Incorporated and ESGEN Acquisition Corp, you can compare the effects of market volatilities on RBC Bearings and ESGEN Acquisition 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 RBC Bearings with a short position of ESGEN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Bearings and ESGEN Acquisition.
Diversification Opportunities for RBC Bearings and ESGEN Acquisition
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between RBC and ESGEN is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding RBC Bearings Incorporated and ESGEN Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGEN Acquisition Corp and RBC Bearings 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 RBC Bearings Incorporated are associated (or correlated) with ESGEN Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGEN Acquisition Corp has no effect on the direction of RBC Bearings i.e., RBC Bearings and ESGEN Acquisition go up and down completely randomly.
Pair Corralation between RBC Bearings and ESGEN Acquisition
If you would invest 29,154 in RBC Bearings Incorporated on September 1, 2024 and sell it today you would earn a total of 4,357 from holding RBC Bearings Incorporated or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
RBC Bearings Incorporated vs. ESGEN Acquisition Corp
Performance |
| Timeline |
| RBC Bearings |
| ESGEN Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
RBC Bearings and ESGEN Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Bearings and ESGEN Acquisition
The main advantage of trading using opposite RBC Bearings and ESGEN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Bearings position performs unexpectedly, ESGEN Acquisition 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 ESGEN Acquisition will offset losses from the drop in ESGEN Acquisition's long position.| RBC Bearings vs. Lincoln Electric Holdings | RBC Bearings vs. Kennametal | RBC Bearings vs. Toro Co | RBC Bearings vs. Snap On |
| ESGEN Acquisition vs. Femasys | ESGEN Acquisition vs. Postal Realty Trust | ESGEN Acquisition vs. Nexstar Broadcasting Group | ESGEN Acquisition vs. Sun Country Airlines |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |