Correlation Between Ritchie Bros and UPS CDR
Can any of the company-specific risk be diversified away by investing in both Ritchie Bros and UPS CDR 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 Ritchie Bros and UPS CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ritchie Bros Auctioneers and UPS CDR, you can compare the effects of market volatilities on Ritchie Bros and UPS CDR 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 Ritchie Bros with a short position of UPS CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ritchie Bros and UPS CDR.
Diversification Opportunities for Ritchie Bros and UPS CDR
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ritchie and UPS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ritchie Bros Auctioneers and UPS CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPS CDR and Ritchie Bros 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 Ritchie Bros Auctioneers are associated (or correlated) with UPS CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPS CDR has no effect on the direction of Ritchie Bros i.e., Ritchie Bros and UPS CDR go up and down completely randomly.
Pair Corralation between Ritchie Bros and UPS CDR
Assuming the 90 days trading horizon Ritchie Bros Auctioneers is expected to generate 0.7 times more return on investment than UPS CDR. However, Ritchie Bros Auctioneers is 1.43 times less risky than UPS CDR. It trades about -0.07 of its potential returns per unit of risk. UPS CDR is currently generating about -0.1 per unit of risk. If you would invest 14,739 in Ritchie Bros Auctioneers on July 20, 2025 and sell it today you would lose (869.00) from holding Ritchie Bros Auctioneers or give up 5.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ritchie Bros Auctioneers vs. UPS CDR
Performance |
| Timeline |
| Ritchie Bros Auctioneers |
| UPS CDR |
Ritchie Bros and UPS CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ritchie Bros and UPS CDR
The main advantage of trading using opposite Ritchie Bros and UPS CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ritchie Bros position performs unexpectedly, UPS CDR 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 UPS CDR will offset losses from the drop in UPS CDR's long position.| Ritchie Bros vs. WSP Global | Ritchie Bros vs. Bombardier | Ritchie Bros vs. Bombardier | Ritchie Bros vs. Stantec |
| UPS CDR vs. American CuMo Mining | UPS CDR vs. Perseus Mining | UPS CDR vs. Globex Mining Enterprises | UPS CDR vs. Queens Road Capital |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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