Correlation Between Rubis and Phillips
Can any of the company-specific risk be diversified away by investing in both Rubis and Phillips 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 Phillips into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis and Phillips 66, you can compare the effects of market volatilities on Rubis and Phillips 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 Phillips. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis and Phillips.
Diversification Opportunities for Rubis and Phillips
Very good diversification
The 3 months correlation between Rubis and Phillips is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Rubis and Phillips 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phillips 66 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 Phillips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phillips 66 has no effect on the direction of Rubis i.e., Rubis and Phillips go up and down completely randomly.
Pair Corralation between Rubis and Phillips
If you would invest 11,997 in Phillips 66 on September 5, 2024 and sell it today you would earn a total of 1,451 from holding Phillips 66 or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Rubis vs. Phillips 66
Performance |
| Timeline |
| Rubis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Phillips 66 |
Rubis and Phillips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubis and Phillips
The main advantage of trading using opposite Rubis and Phillips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis position performs unexpectedly, Phillips 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 Phillips will offset losses from the drop in Phillips' long position.| Rubis vs. DCC PLC ADR | Rubis vs. Ultrapar Participacoes SA | Rubis vs. Sunoco LP | Rubis vs. HF Sinclair Corp |
| Phillips vs. Marathon Petroleum Corp | Phillips vs. HF Sinclair Corp | Phillips vs. PBF Energy | Phillips vs. Sunoco LP |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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