Correlation Between RB Global and Thomson Reuters

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

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

Diversification Opportunities for RB Global and Thomson Reuters

-0.43

Correlation Coefficient

RB Global  Thomson Reuters

Very good diversification

The 3 months correlation between RBA and Thomson is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding RB Global and Thomson Reuters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thomson Reuters and RB Global 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 RB Global are associated (or correlated) with Thomson Reuters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thomson Reuters has no effect on the direction of RB Global i.e., RB Global and Thomson Reuters go up and down completely randomly.

Pair Corralation between RB Global and Thomson Reuters

Considering the 90-day investment horizon RB Global is expected to generate 0.55 times more return on investment than Thomson Reuters. However, RB Global is 1.82 times less risky than Thomson Reuters. It trades about 0.13 of its potential returns per unit of risk. Thomson Reuters is currently generating about -0.11 per unit of risk. If you would invest  10,832  in RB Global on May 17, 2025 and sell it today you would earn a total of  911.00  from holding RB Global or generate 8.41% return on investment over 90 days.

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

RB Global  vs.  Thomson Reuters

RB Global

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in RB Global are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, RB Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Thomson Reuters

Risk-Adjusted Performance

Weakest

Over the last 90 days Thomson Reuters has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with RB Global and Thomson Reuters

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

The idea behind RB Global and Thomson Reuters 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.