Correlation Between Rubicon Technology and East West
Can any of the company-specific risk be diversified away by investing in both Rubicon Technology and East West 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 Rubicon Technology and East West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubicon Technology and East West Bancorp, you can compare the effects of market volatilities on Rubicon Technology and East West 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 Rubicon Technology with a short position of East West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubicon Technology and East West.
Diversification Opportunities for Rubicon Technology and East West
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rubicon and East is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Rubicon Technology and East West Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East West Bancorp and Rubicon Technology 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 Rubicon Technology are associated (or correlated) with East West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East West Bancorp has no effect on the direction of Rubicon Technology i.e., Rubicon Technology and East West go up and down completely randomly.
Pair Corralation between Rubicon Technology and East West
If you would invest 9,694 in East West Bancorp on September 1, 2024 and sell it today you would earn a total of 1,274 from holding East West Bancorp or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Rubicon Technology vs. East West Bancorp
Performance |
| Timeline |
| Rubicon Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| East West Bancorp |
Rubicon Technology and East West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubicon Technology and East West
The main advantage of trading using opposite Rubicon Technology and East West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubicon Technology position performs unexpectedly, East West 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 East West will offset losses from the drop in East West's long position.| Rubicon Technology vs. Axcelis Technologies | Rubicon Technology vs. inTest | Rubicon Technology vs. Lam Research Corp | Rubicon Technology vs. Photronics |
| East West vs. Barclays PLC ADR | East West vs. UBS Group AG | East West vs. ING Group NV | East West vs. Citigroup |
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.
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