Correlation Between American Rebel and Renewable Energy

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

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

Diversification Opportunities for American Rebel and Renewable Energy

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Correlation Coefficient

American Rebel  Renewable Energy

Pay attention - limited upside

The 3 months correlation between American and Renewable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Rebel Holdings and Renewable Energy and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renewable Energy and American Rebel 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 American Rebel Holdings are associated (or correlated) with Renewable Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renewable Energy has no effect on the direction of American Rebel i.e., American Rebel and Renewable Energy go up and down completely randomly.

Pair Corralation between American Rebel and Renewable Energy

Given the investment horizon of 90 days American Rebel Holdings is expected to generate 2.29 times more return on investment than Renewable Energy. However, American Rebel is 2.29 times more volatile than Renewable Energy and. It trades about -0.02 of its potential returns per unit of risk. Renewable Energy and is currently generating about -0.05 per unit of risk. If you would invest  3,402  in American Rebel Holdings on August 31, 2024 and sell it today you would lose (3,197) from holding American Rebel Holdings or give up 93.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.47%
Values	Daily Returns

American Rebel Holdings  vs.  Renewable Energy and

American Rebel Holdings

Risk-Adjusted Performance

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Very Weak

Over the last 90 days American Rebel Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Renewable Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Renewable Energy and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Renewable Energy is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with American Rebel and Renewable Energy

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

The idea behind American Rebel Holdings and Renewable Energy and 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.

Check out your portfolio center.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.