Correlation Between Vitesse Energy and RPC

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

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

Diversification Opportunities for Vitesse Energy and RPC

0.26

Correlation Coefficient

Vitesse Energy  RPC

Modest diversification

The 3 months correlation between Vitesse and RPC is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Vitesse Energy and RPC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPC Inc and Vitesse Energy 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 Vitesse Energy are associated (or correlated) with RPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPC Inc has no effect on the direction of Vitesse Energy i.e., Vitesse Energy and RPC go up and down completely randomly.

Pair Corralation between Vitesse Energy and RPC

Considering the 90-day investment horizon Vitesse Energy is expected to under-perform the RPC. But the stock apears to be less risky and, when comparing its historical volatility, Vitesse Energy is 1.07 times less risky than RPC. The stock trades about -0.04 of its potential returns per unit of risk. The RPC Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  473.00  in RPC Inc on July 30, 2025 and sell it today you would earn a total of  5.00  from holding RPC Inc or generate 1.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Vitesse Energy  vs.  RPC Inc

Vitesse Energy

Risk-Adjusted Performance

Weakest

Over the last 90 days Vitesse Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Vitesse Energy is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

RPC Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in RPC Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, RPC is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Vitesse Energy and RPC

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

The idea behind Vitesse Energy and RPC Inc 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.

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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.