Correlation Between Rumble and Else Nutrition

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Rumble and Else Nutrition 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 Else Nutrition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rumble Inc and Else Nutrition Holdings, you can compare the effects of market volatilities on Rumble and Else Nutrition 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 Else Nutrition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rumble and Else Nutrition.

Diversification Opportunities for Rumble and Else Nutrition

RumbleElseDiversified AwayRumbleElseDiversified Away100%
-0.76
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Rumble and Else is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Rumble Inc and Else Nutrition Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Else Nutrition Holdings 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 Else Nutrition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Else Nutrition Holdings has no effect on the direction of Rumble i.e., Rumble and Else Nutrition go up and down completely randomly.

Pair Corralation between Rumble and Else Nutrition

Considering the 90-day investment horizon Rumble Inc is expected to generate 0.56 times more return on investment than Else Nutrition. However, Rumble Inc is 1.8 times less risky than Else Nutrition. It trades about 0.14 of its potential returns per unit of risk. Else Nutrition Holdings is currently generating about -0.09 per unit of risk. If you would invest  565.00  in Rumble Inc on September 16, 2024 and sell it today you would earn a total of  265.00  from holding Rumble Inc or generate 46.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Rumble Inc  vs.  Else Nutrition Holdings

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -60-40-200204060
JavaScript chart by amCharts 3.21.15RUM BABYF
       Timeline  
Rumble Inc 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Rumble Inc are ranked lower than 10 (%) 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.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec55.566.577.588.5
Else Nutrition Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Else Nutrition Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.0150.020.0250.030.0350.040.045

Rumble and Else Nutrition Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-16.21-12.14-8.07-4.0-0.06784.238.6112.9917.3721.74 0.0040.0060.0080.0100.0120.014
JavaScript chart by amCharts 3.21.15RUM BABYF
       Returns  

Pair Trading with Rumble and Else Nutrition

The main advantage of trading using opposite Rumble and Else Nutrition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rumble position performs unexpectedly, Else Nutrition 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 Else Nutrition will offset losses from the drop in Else Nutrition's long position.
The idea behind Rumble Inc and Else Nutrition Holdings 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities