Correlation Between Rumble and Eurobank Ergasias

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

By analyzing existing cross correlation between Rumble Inc and Eurobank Ergasias Services, you can compare the effects of market volatilities on Rumble and Eurobank Ergasias 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 Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rumble and Eurobank Ergasias.

Diversification Opportunities for Rumble and Eurobank Ergasias

-0.16

Correlation Coefficient

Rumble  Eurobank Ergasias

Good diversification

The 3 months correlation between Rumble and Eurobank is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Rumble Inc and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias 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 Eurobank Ergasias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurobank Ergasias has no effect on the direction of Rumble i.e., Rumble and Eurobank Ergasias go up and down completely randomly.

Pair Corralation between Rumble and Eurobank Ergasias

Considering the 90-day investment horizon Rumble Inc is expected to under-perform the Eurobank Ergasias. In addition to that, Rumble is 2.17 times more volatile than Eurobank Ergasias Services. It trades about -0.2 of its total potential returns per unit of risk. Eurobank Ergasias Services is currently generating about 0.09 per unit of volatility. If you would invest  224.00  in Eurobank Ergasias Services on December 29, 2024 and sell it today you would earn a total of  22.00  from holding Eurobank Ergasias Services or generate 9.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	86.89%
Values	Daily Returns

Rumble Inc  vs.  Eurobank Ergasias Services

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.

Eurobank Ergasias

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eurobank Ergasias Services are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, Eurobank Ergasias reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rumble and Eurobank Ergasias

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

The idea behind Rumble Inc and Eurobank Ergasias Services 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.