Correlation Between Rave Restaurant and Boxed
Can any of the company-specific risk be diversified away by investing in both Rave Restaurant and Boxed 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 Rave Restaurant and Boxed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rave Restaurant Group and Boxed Inc, you can compare the effects of market volatilities on Rave Restaurant and Boxed 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 Rave Restaurant with a short position of Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rave Restaurant and Boxed.
Diversification Opportunities for Rave Restaurant and Boxed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rave and Boxed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rave Restaurant Group and Boxed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxed Inc and Rave Restaurant 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 Rave Restaurant Group are associated (or correlated) with Boxed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxed Inc has no effect on the direction of Rave Restaurant i.e., Rave Restaurant and Boxed go up and down completely randomly.
Pair Corralation between Rave Restaurant and Boxed
If you would invest 280.00 in Rave Restaurant Group on August 29, 2024 and sell it today you would earn a total of 12.00 from holding Rave Restaurant Group or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Rave Restaurant Group vs. Boxed Inc
Performance |
| Timeline |
| Rave Restaurant Group |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rave Restaurant and Boxed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rave Restaurant and Boxed
The main advantage of trading using opposite Rave Restaurant and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rave Restaurant position performs unexpectedly, Boxed 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 Boxed will offset losses from the drop in Boxed's long position.| Rave Restaurant vs. Ark Restaurants Corp | Rave Restaurant vs. One Group Hospitality | Rave Restaurant vs. Flanigans Enterprises | Rave Restaurant vs. Noble Romans |
| Boxed vs. Sweetgreen | Boxed vs. Papaya Growth Opportunity | Boxed vs. The Cheesecake Factory | Boxed vs. Rave Restaurant Group |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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