Correlation Between Rocket Lab and Sable Offshore
Can any of the company-specific risk be diversified away by investing in both Rocket Lab and Sable Offshore 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 Rocket Lab and Sable Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rocket Lab USA and Sable Offshore Corp, you can compare the effects of market volatilities on Rocket Lab and Sable Offshore 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 Rocket Lab with a short position of Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rocket Lab and Sable Offshore.
Diversification Opportunities for Rocket Lab and Sable Offshore
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rocket and Sable is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Rocket Lab USA and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp and Rocket Lab 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 Rocket Lab USA are associated (or correlated) with Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of Rocket Lab i.e., Rocket Lab and Sable Offshore go up and down completely randomly.
Pair Corralation between Rocket Lab and Sable Offshore
Given the investment horizon of 90 days Rocket Lab USA is expected to generate 0.51 times more return on investment than Sable Offshore. However, Rocket Lab USA is 1.95 times less risky than Sable Offshore. It trades about -0.02 of its potential returns per unit of risk. Sable Offshore Corp is currently generating about -0.21 per unit of risk. If you would invest 4,931 in Rocket Lab USA on September 1, 2025 and sell it today you would lose (717.00) from holding Rocket Lab USA or give up 14.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rocket Lab USA vs. Sable Offshore Corp
Performance |
| Timeline |
| Rocket Lab USA |
| Sable Offshore Corp |
Rocket Lab and Sable Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rocket Lab and Sable Offshore
The main advantage of trading using opposite Rocket Lab and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rocket Lab position performs unexpectedly, Sable Offshore 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 Sable Offshore will offset losses from the drop in Sable Offshore's long position.| Rocket Lab vs. Profound Medical Corp | Rocket Lab vs. American Medical Technologies | Rocket Lab vs. Union Medical Healthcare | Rocket Lab vs. Merit Medical Systems |
| Sable Offshore vs. Martin Marietta Materials | Sable Offshore vs. Doman Building Materials | Sable Offshore vs. Borr Drilling | Sable Offshore vs. Delek Drilling |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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