Correlation Between Rambler Metals and Siriuspoint

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

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

Diversification Opportunities for Rambler Metals and Siriuspoint

0.0

Correlation Coefficient

Rambler Metals  Siriuspoint

Pay attention - limited upside

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

Pair Corralation between Rambler Metals and Siriuspoint

If you would invest  1,577  in Siriuspoint on October 8, 2024 and sell it today you would lose (7.00) from holding Siriuspoint or give up 0.44% of portfolio value over 90 days.

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

Rambler Metals and  vs.  Siriuspoint

Rambler Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rambler Metals and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Rambler Metals is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Siriuspoint

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Siriuspoint are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Siriuspoint unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rambler Metals and Siriuspoint

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

The idea behind Rambler Metals and and Siriuspoint 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 Transaction History module to view history of all your transactions and understand their impact on performance.