Correlation Between GA EXpress and Rumble

Can any of the company-specific risk be diversified away by investing in both GA EXpress and Rumble 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 GA EXpress and Rumble into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GA eXpress and Rumble Inc, you can compare the effects of market volatilities on GA EXpress and Rumble 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 GA EXpress with a short position of Rumble. Check out your portfolio center. Please also check ongoing floating volatility patterns of GA EXpress and Rumble.

Diversification Opportunities for GA EXpress and Rumble

0.0

Correlation Coefficient

GA EXpress  Rumble

Pay attention - limited upside

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

Pair Corralation between GA EXpress and Rumble

If you would invest  809.00  in Rumble Inc on December 17, 2024 and sell it today you would lose (6.00) from holding Rumble Inc or give up 0.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

GA eXpress  vs.  Rumble Inc

GA eXpress

Risk-Adjusted Performance

Very Weak

Over the last 90 days GA eXpress has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, GA EXpress is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rumble Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Rumble Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Rumble displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GA EXpress and Rumble

The main advantage of trading using opposite GA EXpress and Rumble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GA EXpress position performs unexpectedly, Rumble 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 Rumble will offset losses from the drop in Rumble's long position.

The idea behind GA eXpress and Rumble Inc 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.