Correlation Between Rubicon Organics and National Bank
Can any of the company-specific risk be diversified away by investing in both Rubicon Organics and National Bank 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 Organics and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubicon Organics and National Bank of, you can compare the effects of market volatilities on Rubicon Organics and National Bank 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 Organics with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubicon Organics and National Bank.
Diversification Opportunities for Rubicon Organics and National Bank
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rubicon and National is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Rubicon Organics and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Rubicon Organics 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 Organics are associated (or correlated) with National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Rubicon Organics i.e., Rubicon Organics and National Bank go up and down completely randomly.
Pair Corralation between Rubicon Organics and National Bank
Assuming the 90 days trading horizon Rubicon Organics is expected to under-perform the National Bank. In addition to that, Rubicon Organics is 18.55 times more volatile than National Bank of. It trades about -0.05 of its total potential returns per unit of risk. National Bank of is currently generating about 0.2 per unit of volatility. If you would invest 2,586 in National Bank of on September 1, 2024 and sell it today you would earn a total of 39.00 from holding National Bank of or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubicon Organics vs. National Bank of
Performance |
| Timeline |
| Rubicon Organics |
| National Bank |
Rubicon Organics and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubicon Organics and National Bank
The main advantage of trading using opposite Rubicon Organics and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubicon Organics position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| Rubicon Organics vs. iShares Canadian HYBrid | Rubicon Organics vs. Altagas Cum Red | Rubicon Organics vs. European Residential Real | Rubicon Organics vs. iShares Fundamental Hedged |
| National Bank vs. Brookfield Investments | National Bank vs. Rubicon Organics | National Bank vs. Arbor Metals Corp | National Bank vs. Goodfood Market 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 Stocks Directory module to find actively traded stocks across global markets.
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