Correlation Between Kbridge Energy and Rock Ridge

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

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

Diversification Opportunities for Kbridge Energy and Rock Ridge

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Correlation Coefficient

Kbridge Energy  Rock Ridge

Pay attention - limited upside

The 3 months correlation between Kbridge and Rock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kbridge Energy Corp and Rock Ridge Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rock Ridge Resources and Kbridge 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 Kbridge Energy Corp are associated (or correlated) with Rock Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rock Ridge Resources has no effect on the direction of Kbridge Energy i.e., Kbridge Energy and Rock Ridge go up and down completely randomly.

Pair Corralation between Kbridge Energy and Rock Ridge

If you would invest (100.00) in Rock Ridge Resources on October 6, 2025 and sell it today you would earn a total of  100.00  from holding Rock Ridge Resources or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kbridge Energy Corp  vs.  Rock Ridge Resources

Kbridge Energy Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Kbridge Energy Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Kbridge Energy is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Rock Ridge Resources

Risk-Adjusted Performance

Weakest

Over the last 90 days Rock Ridge Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Rock Ridge is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Kbridge Energy and Rock Ridge

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

The idea behind Kbridge Energy Corp and Rock Ridge Resources 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.