Correlation Between Rocket Companies and Berkeley Energy
Can any of the company-specific risk be diversified away by investing in both Rocket Companies and Berkeley Energy 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 Companies and Berkeley Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rocket Companies and Berkeley Energy, you can compare the effects of market volatilities on Rocket Companies and Berkeley Energy 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 Companies with a short position of Berkeley Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rocket Companies and Berkeley Energy.
Diversification Opportunities for Rocket Companies and Berkeley Energy
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rocket and Berkeley is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Rocket Companies and Berkeley Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkeley Energy and Rocket Companies 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 Companies are associated (or correlated) with Berkeley Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkeley Energy has no effect on the direction of Rocket Companies i.e., Rocket Companies and Berkeley Energy go up and down completely randomly.
Pair Corralation between Rocket Companies and Berkeley Energy
Considering the 90-day investment horizon Rocket Companies is expected to generate 0.96 times more return on investment than Berkeley Energy. However, Rocket Companies is 1.04 times less risky than Berkeley Energy. It trades about 0.22 of its potential returns per unit of risk. Berkeley Energy is currently generating about -0.04 per unit of risk. If you would invest 1,711 in Rocket Companies on June 12, 2025 and sell it today you would earn a total of 335.00 from holding Rocket Companies or generate 19.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rocket Companies vs. Berkeley Energy
Performance |
| Timeline |
| Rocket Companies |
| Berkeley Energy |
Rocket Companies and Berkeley Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rocket Companies and Berkeley Energy
The main advantage of trading using opposite Rocket Companies and Berkeley Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rocket Companies position performs unexpectedly, Berkeley Energy 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 Berkeley Energy will offset losses from the drop in Berkeley Energy's long position.| Rocket Companies vs. Mr Cooper Group | Rocket Companies vs. Loandepot | Rocket Companies vs. PennyMac Finl Svcs | Rocket Companies vs. UWM Holdings Corp |
| Berkeley Energy vs. Paladin Energy | Berkeley Energy vs. Uranium Royalty Corp | Berkeley Energy vs. NexGen Energy | Berkeley Energy vs. Denison Mines 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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