Correlation Between Bloomin Brands and RCI Hospitality
Can any of the company-specific risk be diversified away by investing in both Bloomin Brands and RCI Hospitality 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 Bloomin Brands and RCI Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomin Brands and RCI Hospitality Holdings, you can compare the effects of market volatilities on Bloomin Brands and RCI Hospitality 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 Bloomin Brands with a short position of RCI Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomin Brands and RCI Hospitality.
Diversification Opportunities for Bloomin Brands and RCI Hospitality
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bloomin and RCI is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bloomin Brands and RCI Hospitality Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCI Hospitality Holdings and Bloomin Brands 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 Bloomin Brands are associated (or correlated) with RCI Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCI Hospitality Holdings has no effect on the direction of Bloomin Brands i.e., Bloomin Brands and RCI Hospitality go up and down completely randomly.
Pair Corralation between Bloomin Brands and RCI Hospitality
Given the investment horizon of 90 days Bloomin Brands is expected to under-perform the RCI Hospitality. In addition to that, Bloomin Brands is 1.57 times more volatile than RCI Hospitality Holdings. It trades about -0.16 of its total potential returns per unit of risk. RCI Hospitality Holdings is currently generating about 0.26 per unit of volatility. If you would invest 4,470 in RCI Hospitality Holdings on August 27, 2024 and sell it today you would earn a total of 698.00 from holding RCI Hospitality Holdings or generate 15.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomin Brands vs. RCI Hospitality Holdings
Performance |
| Timeline |
| Bloomin Brands |
| RCI Hospitality Holdings |
Bloomin Brands and RCI Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomin Brands and RCI Hospitality
The main advantage of trading using opposite Bloomin Brands and RCI Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomin Brands position performs unexpectedly, RCI Hospitality 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 RCI Hospitality will offset losses from the drop in RCI Hospitality's long position.| Bloomin Brands vs. Dine Brands Global | Bloomin Brands vs. BJs Restaurants | Bloomin Brands vs. The Cheesecake Factory | Bloomin Brands vs. Brinker International |
| RCI Hospitality vs. Brinker International | RCI Hospitality vs. Bloomin Brands | RCI Hospitality vs. BJs Restaurants | RCI Hospitality vs. Dennys Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |