Correlation Between GivBux and Rumble

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

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

Diversification Opportunities for GivBux and Rumble

0.85

Correlation Coefficient

GivBux  Rumble

Very poor diversification

The 3 months correlation between GivBux and Rumble is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding GivBux Inc and Rumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rumble Inc and GivBux 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 GivBux Inc 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 GivBux i.e., GivBux and Rumble go up and down completely randomly.

Pair Corralation between GivBux and Rumble

Given the investment horizon of 90 days GivBux Inc is expected to generate 0.41 times more return on investment than Rumble. However, GivBux Inc is 2.44 times less risky than Rumble. It trades about 0.51 of its potential returns per unit of risk. Rumble Inc is currently generating about 0.15 per unit of risk. If you would invest  85.00  in GivBux Inc on October 11, 2024 and sell it today you would earn a total of  102.00  from holding GivBux Inc or generate 120.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

GivBux Inc  vs.  Rumble Inc

GivBux Inc

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GivBux Inc are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, GivBux showed solid returns over the last few months and may actually be approaching a breakup point.

Rumble Inc

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rumble Inc are ranked lower than 11 (%) 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 GivBux and Rumble

The main advantage of trading using opposite GivBux and Rumble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GivBux 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 GivBux Inc 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.