Correlation Between Rumble and Bill

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

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

Diversification Opportunities for Rumble and Bill

0.74

Correlation Coefficient

Rumble  Bill

Poor diversification

The 3 months correlation between Rumble and Bill is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Rumble Inc and Bill Com Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Com Holdings and Rumble 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 Rumble Inc are associated (or correlated) with Bill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Com Holdings has no effect on the direction of Rumble i.e., Rumble and Bill go up and down completely randomly.

Pair Corralation between Rumble and Bill

Considering the 90-day investment horizon Rumble Inc is expected to under-perform the Bill. But the stock apears to be less risky and, when comparing its historical volatility, Rumble Inc is 1.1 times less risky than Bill. The stock trades about -0.2 of its potential returns per unit of risk. The Bill Com Holdings is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest  8,694  in Bill Com Holdings on December 27, 2024 and sell it today you would lose (3,848) from holding Bill Com Holdings or give up 44.26% of portfolio value over 90 days.

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

Rumble Inc  vs.  Bill Com Holdings

Rumble Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rumble Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Bill Com Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bill Com Holdings 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 essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Rumble and Bill

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

The idea behind Rumble Inc and Bill Com Holdings 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 Global Correlations module to find global opportunities by holding instruments from different markets.