Correlation Between Rumble and Sable Offshore
Can any of the company-specific risk be diversified away by investing in both Rumble and Sable Offshore 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 Rumble and Sable Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rumble Inc and Sable Offshore Corp, you can compare the effects of market volatilities on Rumble and Sable Offshore 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 Rumble with a short position of Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rumble and Sable Offshore.
Diversification Opportunities for Rumble and Sable Offshore
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rumble and Sable is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Rumble Inc and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp and Rumble 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 Rumble Inc are associated (or correlated) with Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of Rumble i.e., Rumble and Sable Offshore go up and down completely randomly.
Pair Corralation between Rumble and Sable Offshore
Considering the 90-day investment horizon Rumble is expected to generate 3.72 times less return on investment than Sable Offshore. In addition to that, Rumble is 1.57 times more volatile than Sable Offshore Corp. It trades about 0.01 of its total potential returns per unit of risk. Sable Offshore Corp is currently generating about 0.08 per unit of volatility. If you would invest 1,010 in Sable Offshore Corp on September 3, 2024 and sell it today you would earn a total of 1,338 from holding Sable Offshore Corp or generate 132.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.32% |
| Values | Daily Returns |
Rumble Inc vs. Sable Offshore Corp
Performance |
| Timeline |
| Rumble Inc |
| Sable Offshore Corp |
Rumble and Sable Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rumble and Sable Offshore
The main advantage of trading using opposite Rumble and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rumble position performs unexpectedly, Sable Offshore 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 Sable Offshore will offset losses from the drop in Sable Offshore's long position.The idea behind Rumble Inc and Sable Offshore Corp 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.| Sable Offshore vs. Dine Brands Global | Sable Offshore vs. RCI Hospitality Holdings | Sable Offshore vs. Sweetgreen | Sable Offshore vs. Dennys 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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