Correlation Between RF Capital and Urbana
Can any of the company-specific risk be diversified away by investing in both RF Capital and Urbana 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 RF Capital and Urbana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RF Capital Group and Urbana, you can compare the effects of market volatilities on RF Capital and Urbana 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 RF Capital with a short position of Urbana. Check out your portfolio center. Please also check ongoing floating volatility patterns of RF Capital and Urbana.
Diversification Opportunities for RF Capital and Urbana
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GMPXF and Urbana is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding RF Capital Group and Urbana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urbana and RF Capital 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 RF Capital Group are associated (or correlated) with Urbana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urbana has no effect on the direction of RF Capital i.e., RF Capital and Urbana go up and down completely randomly.
Pair Corralation between RF Capital and Urbana
Assuming the 90 days horizon RF Capital Group is expected to under-perform the Urbana. But the pink sheet apears to be less risky and, when comparing its historical volatility, RF Capital Group is 11.83 times less risky than Urbana. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Urbana is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 535.00 in Urbana on September 2, 2025 and sell it today you would earn a total of 60.00 from holding Urbana or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.31% |
| Values | Daily Returns |
RF Capital Group vs. Urbana
Performance |
| Timeline |
| RF Capital Group |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Urbana |
RF Capital and Urbana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RF Capital and Urbana
The main advantage of trading using opposite RF Capital and Urbana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RF Capital position performs unexpectedly, Urbana 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 Urbana will offset losses from the drop in Urbana's long position.| RF Capital vs. Shanghai Fudan Microelectronics | RF Capital vs. Canon Electronics | RF Capital vs. BYD Electronic | RF Capital vs. Good Times Restaurants |
| Urbana vs. Sterling Construction | Urbana vs. SportsHero Limited | Urbana vs. InPlay Oil Corp | Urbana vs. Interplay Entertainment Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |