Correlation Between Rumble and Via Renewables

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

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

Diversification Opportunities for Rumble and Via Renewables

-0.11

Correlation Coefficient

Rumble  Via Renewables

Good diversification

The 3 months correlation between Rumble and Via is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Rumble Inc and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables 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 Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of Rumble i.e., Rumble and Via Renewables go up and down completely randomly.

Pair Corralation between Rumble and Via Renewables

Considering the 90-day investment horizon Rumble Inc is expected to generate 17.27 times more return on investment than Via Renewables. However, Rumble is 17.27 times more volatile than Via Renewables. It trades about 0.05 of its potential returns per unit of risk. Via Renewables is currently generating about 0.15 per unit of risk. If you would invest  727.00  in Rumble Inc on December 19, 2024 and sell it today you would earn a total of  42.00  from holding Rumble Inc or generate 5.78% return on investment over 90 days.

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

Rumble Inc  vs.  Via Renewables

Rumble Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Rumble Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Rumble displayed solid returns over the last few months and may actually be approaching a breakup point.

Via Renewables

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Via Renewables are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Via Renewables may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Rumble and Via Renewables

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

The idea behind Rumble Inc and Via Renewables 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.