Correlation Between Clear Secure and Rumble

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

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

Diversification Opportunities for Clear Secure and Rumble

-0.43

Correlation Coefficient

Clear Secure  Rumble

Very good diversification

The 3 months correlation between Clear and Rumble is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Clear Secure and Rumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rumble Inc and Clear Secure 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 Clear Secure are associated (or correlated) with Rumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rumble Inc has no effect on the direction of Clear Secure i.e., Clear Secure and Rumble go up and down completely randomly.

Pair Corralation between Clear Secure and Rumble

Considering the 90-day investment horizon Clear Secure is expected to under-perform the Rumble. But the stock apears to be less risky and, when comparing its historical volatility, Clear Secure is 2.98 times less risky than Rumble. The stock trades about -0.02 of its potential returns per unit of risk. The Rumble Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  537.00  in Rumble Inc on October 6, 2024 and sell it today you would earn a total of  806.00  from holding Rumble Inc or generate 150.09% return on investment over 90 days.

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

Clear Secure  vs.  Rumble Inc

Clear Secure

Risk-Adjusted Performance

0 of 100

Very Weak

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

Rumble Inc

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rumble Inc are ranked lower than 13 (%) 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.

Pair Trading with Clear Secure and Rumble

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

The idea behind Clear Secure and Rumble Inc 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 CEOs Directory module to screen CEOs from public companies around the world.