Correlation Between Rocket Companies and InTest
Can any of the company-specific risk be diversified away by investing in both Rocket Companies and InTest 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 Rocket Companies and InTest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rocket Companies and inTest, you can compare the effects of market volatilities on Rocket Companies and InTest 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 Rocket Companies with a short position of InTest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rocket Companies and InTest.
Diversification Opportunities for Rocket Companies and InTest
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rocket and InTest is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Rocket Companies and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest and Rocket Companies 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 Rocket Companies are associated (or correlated) with InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of Rocket Companies i.e., Rocket Companies and InTest go up and down completely randomly.
Pair Corralation between Rocket Companies and InTest
Considering the 90-day investment horizon Rocket Companies is expected to generate 2.13 times less return on investment than InTest. But when comparing it to its historical volatility, Rocket Companies is 1.03 times less risky than InTest. It trades about 0.06 of its potential returns per unit of risk. inTest is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 834.00 in inTest on November 12, 2025 and sell it today you would earn a total of 220.00 from holding inTest or generate 26.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rocket Companies vs. inTest
Performance |
| Timeline |
| Rocket Companies |
| inTest |
Rocket Companies and InTest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rocket Companies and InTest
The main advantage of trading using opposite Rocket Companies and InTest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rocket Companies position performs unexpectedly, InTest 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 InTest will offset losses from the drop in InTest's long position.| Rocket Companies vs. Nasdaq Inc | Rocket Companies vs. MSCI Inc | Rocket Companies vs. MetLife | Rocket Companies vs. The Allstate |
| InTest vs. Amtech Systems | InTest vs. MagnaChip Semiconductor | InTest vs. QuickLogic | InTest vs. Mobix Labs |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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