Correlation Between Rave Restaurant and BTS Group
Can any of the company-specific risk be diversified away by investing in both Rave Restaurant and BTS Group 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 BTS Group 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 BTS Group Holdings, you can compare the effects of market volatilities on Rave Restaurant and BTS Group 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 BTS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rave Restaurant and BTS Group.
Diversification Opportunities for Rave Restaurant and BTS Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rave and BTS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rave Restaurant Group and BTS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTS Group Holdings 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 BTS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTS Group Holdings has no effect on the direction of Rave Restaurant i.e., Rave Restaurant and BTS Group go up and down completely randomly.
Pair Corralation between Rave Restaurant and BTS Group
If you would invest 187.00 in Rave Restaurant Group on September 14, 2024 and sell it today you would earn a total of 115.00 from holding Rave Restaurant Group or generate 61.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rave Restaurant Group vs. BTS Group Holdings
Performance |
| Timeline |
| Rave Restaurant Group |
| BTS Group Holdings |
Rave Restaurant and BTS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rave Restaurant and BTS Group
The main advantage of trading using opposite Rave Restaurant and BTS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rave Restaurant position performs unexpectedly, BTS Group 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 BTS Group will offset losses from the drop in BTS Group'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 |
| BTS Group vs. RCI Hospitality Holdings | BTS Group vs. Rave Restaurant Group | BTS Group vs. Doubledown Interactive Co | BTS Group vs. Bt Brands |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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