Correlation Between Revolution Beauty and Sancus Lending

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

By analyzing existing cross correlation between Revolution Beauty Group and Sancus Lending Group, you can compare the effects of market volatilities on Revolution Beauty and Sancus Lending 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 Revolution Beauty with a short position of Sancus Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Revolution Beauty and Sancus Lending.

Diversification Opportunities for Revolution Beauty and Sancus Lending

0.54

Correlation Coefficient

Revolution Beauty  Sancus Lending

Very weak diversification

The 3 months correlation between Revolution and Sancus is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Revolution Beauty Group and Sancus Lending Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sancus Lending Group and Revolution Beauty 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 Revolution Beauty Group are associated (or correlated) with Sancus Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sancus Lending Group has no effect on the direction of Revolution Beauty i.e., Revolution Beauty and Sancus Lending go up and down completely randomly.

Pair Corralation between Revolution Beauty and Sancus Lending

Assuming the 90 days trading horizon Revolution Beauty Group is expected to under-perform the Sancus Lending. In addition to that, Revolution Beauty is 2.56 times more volatile than Sancus Lending Group. It trades about -0.06 of its total potential returns per unit of risk. Sancus Lending Group is currently generating about -0.02 per unit of volatility. If you would invest  50.00  in Sancus Lending Group on May 10, 2025 and sell it today you would lose (5.00) from holding Sancus Lending Group or give up 10.0% of portfolio value over 90 days.

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

Revolution Beauty Group  vs.  Sancus Lending Group

Revolution Beauty

Risk-Adjusted Performance

Weakest

Over the last 90 days Revolution Beauty Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Sancus Lending Group

Risk-Adjusted Performance

Weakest

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

Pair Trading with Revolution Beauty and Sancus Lending

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

The idea behind Revolution Beauty Group and Sancus Lending Group 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.