Correlation Between Rubis and PBF Energy

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Can any of the company-specific risk be diversified away by investing in both Rubis and PBF Energy 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 Rubis and PBF Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis and PBF Energy, you can compare the effects of market volatilities on Rubis and PBF Energy 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 Rubis with a short position of PBF Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis and PBF Energy.

Diversification Opportunities for Rubis and PBF Energy

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Rubis and PBF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rubis and PBF Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PBF Energy and Rubis 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 Rubis are associated (or correlated) with PBF Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PBF Energy has no effect on the direction of Rubis i.e., Rubis and PBF Energy go up and down completely randomly.

Pair Corralation between Rubis and PBF Energy

If you would invest  2,984  in PBF Energy on September 13, 2024 and sell it today you would earn a total of  58.00  from holding PBF Energy or generate 1.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy4.76%
ValuesDaily Returns

Rubis  vs.  PBF Energy

 Performance 
       Timeline  
Rubis 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Rubis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Rubis is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
PBF Energy 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days PBF Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, PBF Energy is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Rubis and PBF Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Rubis and PBF Energy

The main advantage of trading using opposite Rubis and PBF Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis position performs unexpectedly, PBF Energy 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 PBF Energy will offset losses from the drop in PBF Energy's long position.
The idea behind Rubis and PBF Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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