Correlation Between Rubicon Organics and Canaccord Genuity

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

By analyzing existing cross correlation between Rubicon Organics and Canaccord Genuity Group, you can compare the effects of market volatilities on Rubicon Organics and Canaccord Genuity 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 Rubicon Organics with a short position of Canaccord Genuity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubicon Organics and Canaccord Genuity.

Diversification Opportunities for Rubicon Organics and Canaccord Genuity

-0.13

Correlation Coefficient

Rubicon Organics  Canaccord Genuity

Good diversification

The 3 months correlation between Rubicon and Canaccord is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Rubicon Organics and Canaccord Genuity Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaccord Genuity and Rubicon Organics 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 Rubicon Organics are associated (or correlated) with Canaccord Genuity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaccord Genuity has no effect on the direction of Rubicon Organics i.e., Rubicon Organics and Canaccord Genuity go up and down completely randomly.

Pair Corralation between Rubicon Organics and Canaccord Genuity

Assuming the 90 days trading horizon Rubicon Organics is expected to under-perform the Canaccord Genuity. In addition to that, Rubicon Organics is 4.71 times more volatile than Canaccord Genuity Group. It trades about -0.02 of its total potential returns per unit of risk. Canaccord Genuity Group is currently generating about 0.22 per unit of volatility. If you would invest  2,121  in Canaccord Genuity Group on April 24, 2025 and sell it today you would earn a total of  229.00  from holding Canaccord Genuity Group or generate 10.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Rubicon Organics  vs.  Canaccord Genuity Group

Rubicon Organics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rubicon Organics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Rubicon Organics is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Canaccord Genuity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Canaccord Genuity Group are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Canaccord Genuity may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Rubicon Organics and Canaccord Genuity

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

The idea behind Rubicon Organics and Canaccord Genuity Group 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.