Correlation Between Radient Technologies and RIV Capital

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

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

Diversification Opportunities for Radient Technologies and RIV Capital

0.53

Correlation Coefficient

Radient Technologies  RIV Capital

Very weak diversification

The 3 months correlation between Radient and RIV is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Radient Technologies and RIV Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RIV Capital and Radient 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 Radient Technologies are associated (or correlated) with RIV Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RIV Capital has no effect on the direction of Radient Technologies i.e., Radient Technologies and RIV Capital go up and down completely randomly.

Pair Corralation between Radient Technologies and RIV Capital

If you would invest  0.00  in Radient Technologies on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Radient Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	70.0%
Values	Daily Returns

Radient Technologies  vs.  RIV Capital

Radient Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Radient Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

RIV Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RIV Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Radient Technologies and RIV Capital

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

The idea behind Radient Technologies and RIV Capital 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.