Correlation Between RB Global and TransUnion

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

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

Diversification Opportunities for RB Global and TransUnion

0.75

Correlation Coefficient

RB Global  TransUnion

Poor diversification

The 3 months correlation between RBA and TransUnion is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding RB Global and TransUnion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransUnion 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 TransUnion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransUnion has no effect on the direction of RB Global i.e., RB Global and TransUnion go up and down completely randomly.

Pair Corralation between RB Global and TransUnion

Considering the 90-day investment horizon RB Global is expected to under-perform the TransUnion. But the stock apears to be less risky and, when comparing its historical volatility, RB Global is 1.69 times less risky than TransUnion. The stock trades about -0.17 of its potential returns per unit of risk. The TransUnion is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  8,634  in TransUnion on August 31, 2025 and sell it today you would lose (146.00) from holding TransUnion or give up 1.69% of portfolio value over 90 days.

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

RB Global  vs.  TransUnion

RB Global

Risk-Adjusted Performance

Weakest

Over the last 90 days RB Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

TransUnion

Risk-Adjusted Performance

Weakest

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

Pair Trading with RB Global and TransUnion

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

The idea behind RB Global and TransUnion 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.