Correlation Between Lucid and Rubrik,

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

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

Diversification Opportunities for Lucid and Rubrik,

0.52

Correlation Coefficient

Lucid  Rubrik,

Very weak diversification

The 3 months correlation between Lucid and Rubrik, is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lucid Group and Rubrik, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubrik, and Lucid 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 Lucid Group are associated (or correlated) with Rubrik,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubrik, has no effect on the direction of Lucid i.e., Lucid and Rubrik, go up and down completely randomly.

Pair Corralation between Lucid and Rubrik,

Given the investment horizon of 90 days Lucid Group is expected to under-perform the Rubrik,. In addition to that, Lucid is 1.01 times more volatile than Rubrik,. It trades about -0.01 of its total potential returns per unit of risk. Rubrik, is currently generating about 0.04 per unit of volatility. If you would invest  6,698  in Rubrik, on December 19, 2024 and sell it today you would earn a total of  398.00  from holding Rubrik, or generate 5.94% return on investment over 90 days.

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

Lucid Group  vs.  Rubrik,

Lucid Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lucid Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Lucid is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Rubrik,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Rubrik, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Rubrik, disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lucid and Rubrik,

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

The idea behind Lucid Group and Rubrik, 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.