Correlation Between Global E and Rushnet

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

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

Diversification Opportunities for Global E and Rushnet

0.13

Correlation Coefficient

Global E  Rushnet

Average diversification

The 3 months correlation between Global and Rushnet is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Rushnet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rushnet and Global E 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 Global E Online are associated (or correlated) with Rushnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rushnet has no effect on the direction of Global E i.e., Global E and Rushnet go up and down completely randomly.

Pair Corralation between Global E and Rushnet

Given the investment horizon of 90 days Global E Online is expected to under-perform the Rushnet. But the stock apears to be less risky and, when comparing its historical volatility, Global E Online is 11.43 times less risky than Rushnet. The stock trades about -0.18 of its potential returns per unit of risk. The Rushnet is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Rushnet on December 28, 2024 and sell it today you would lose (0.01) from holding Rushnet or give up 50.0% of portfolio value over 90 days.

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

Global E Online  vs.  Rushnet

Global E Online

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global E Online has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Rushnet

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Rushnet are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical indicators, Rushnet displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Global E and Rushnet

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

The idea behind Global E Online and Rushnet 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 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.