Correlation Between Rubicon Technology and InTest

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

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

Diversification Opportunities for Rubicon Technology and InTest

-0.15

Correlation Coefficient

Rubicon Technology  InTest

Good diversification

The 3 months correlation between Rubicon and InTest is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Rubicon Technology and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest and Rubicon Technology 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 Rubicon Technology are associated (or correlated) with InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of Rubicon Technology i.e., Rubicon Technology and InTest go up and down completely randomly.

Pair Corralation between Rubicon Technology and InTest

If you would invest  709.00  in inTest on October 1, 2024 and sell it today you would earn a total of  164.00  from holding inTest or generate 23.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Rubicon Technology  vs.  inTest

Rubicon Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rubicon Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Rubicon Technology is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

inTest

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in inTest are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, InTest unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rubicon Technology and InTest

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

The idea behind Rubicon Technology and inTest 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.