Correlation Between Rubicon Organics and Global Crossing

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

By analyzing existing cross correlation between Rubicon Organics and Global Crossing Airlines, you can compare the effects of market volatilities on Rubicon Organics and Global Crossing 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 Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubicon Organics and Global Crossing.

Diversification Opportunities for Rubicon Organics and Global Crossing

-0.32

Correlation Coefficient

Rubicon Organics  Global Crossing

Very good diversification

The 3 months correlation between Rubicon and Global is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Rubicon Organics and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines 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 Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Rubicon Organics i.e., Rubicon Organics and Global Crossing go up and down completely randomly.

Pair Corralation between Rubicon Organics and Global Crossing

Assuming the 90 days trading horizon Rubicon Organics is expected to under-perform the Global Crossing. In addition to that, Rubicon Organics is 1.04 times more volatile than Global Crossing Airlines. It trades about -0.01 of its total potential returns per unit of risk. Global Crossing Airlines is currently generating about 0.02 per unit of volatility. If you would invest  83.00  in Global Crossing Airlines on April 23, 2025 and sell it today you would earn a total of  0.00  from holding Global Crossing Airlines or generate 0.0% 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.  Global Crossing Airlines

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.

Global Crossing Airlines

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Global Crossing Airlines are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Global Crossing is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Rubicon Organics and Global Crossing

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

The idea behind Rubicon Organics and Global Crossing Airlines 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.