Correlation Between RPC and Global Partners

Can any of the company-specific risk be diversified away by investing in both RPC and Global Partners 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 RPC and Global Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between RPC Inc and Global Partners LP, you can compare the effects of market volatilities on RPC and Global Partners 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 RPC with a short position of Global Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of RPC and Global Partners.

Diversification Opportunities for RPC and Global Partners

0.03

Correlation Coefficient

RPC  Global Partners

Significant diversification

The 3 months correlation between RPC and Global is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding RPC Inc and Global Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partners LP and RPC 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 RPC Inc are associated (or correlated) with Global Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partners LP has no effect on the direction of RPC i.e., RPC and Global Partners go up and down completely randomly.

Pair Corralation between RPC and Global Partners

Considering the 90-day investment horizon RPC Inc is expected to generate 1.57 times more return on investment than Global Partners. However, RPC is 1.57 times more volatile than Global Partners LP. It trades about 0.1 of its potential returns per unit of risk. Global Partners LP is currently generating about -0.12 per unit of risk. If you would invest  443.00  in RPC Inc on August 1, 2025 and sell it today you would earn a total of  57.00  from holding RPC Inc or generate 12.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

RPC Inc  vs.  Global Partners LP

RPC Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in RPC Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, RPC unveiled solid returns over the last few months and may actually be approaching a breakup point.

Global Partners LP

Risk-Adjusted Performance

Weakest

Over the last 90 days Global Partners LP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest abnormal performance, the Stock's essential indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with RPC and Global Partners

The main advantage of trading using opposite RPC and Global Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RPC position performs unexpectedly, Global Partners 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 Global Partners will offset losses from the drop in Global Partners' long position.

The idea behind RPC Inc and Global Partners LP 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.