Correlation Between Strattner Financial and Rosinbomb

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

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

Diversification Opportunities for Strattner Financial and Rosinbomb

0.0

Correlation Coefficient

Strattner Financial  Rosinbomb

Pay attention - limited upside

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

Pair Corralation between Strattner Financial and Rosinbomb

If you would invest  0.01  in Strattner Financial Group on May 4, 2025 and sell it today you would earn a total of  0.00  from holding Strattner Financial Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Strattner Financial Group  vs.  Rosinbomb

Strattner Financial

Risk-Adjusted Performance

Very Weak

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

Rosinbomb

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rosinbomb has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Strattner Financial and Rosinbomb

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

The idea behind Strattner Financial Group and Rosinbomb 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.