Correlation Between Rubicon Technologies and Kubient

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

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

Diversification Opportunities for Rubicon Technologies and Kubient

0.36

Correlation Coefficient

Rubicon Technologies  Kubient

Weak diversification

The 3 months correlation between Rubicon and Kubient is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Rubicon Technologies and Kubient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kubient and Rubicon Technologies 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 Rubicon Technologies are associated (or correlated) with Kubient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kubient has no effect on the direction of Rubicon Technologies i.e., Rubicon Technologies and Kubient go up and down completely randomly.

Pair Corralation between Rubicon Technologies and Kubient

If you would invest  57.00  in Kubient on September 27, 2024 and sell it today you would earn a total of  0.00  from holding Kubient or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	3.33%
Values	Daily Returns

Rubicon Technologies  vs.  Kubient

Rubicon Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rubicon Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Rubicon Technologies is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Kubient

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kubient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Kubient is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Rubicon Technologies and Kubient

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

The idea behind Rubicon Technologies and Kubient 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.