Correlation Between Rave Restaurant and Delta Oil
Can any of the company-specific risk be diversified away by investing in both Rave Restaurant and Delta Oil 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 Delta Oil 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 Delta Oil Gas, you can compare the effects of market volatilities on Rave Restaurant and Delta Oil 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 Delta Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rave Restaurant and Delta Oil.
Diversification Opportunities for Rave Restaurant and Delta Oil
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rave and Delta is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Rave Restaurant Group and Delta Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Oil Gas 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 Delta Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Oil Gas has no effect on the direction of Rave Restaurant i.e., Rave Restaurant and Delta Oil go up and down completely randomly.
Pair Corralation between Rave Restaurant and Delta Oil
If you would invest 291.00 in Rave Restaurant Group on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Rave Restaurant Group or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rave Restaurant Group vs. Delta Oil Gas
Performance |
| Timeline |
| Rave Restaurant Group |
| Delta Oil Gas |
Rave Restaurant and Delta Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rave Restaurant and Delta Oil
The main advantage of trading using opposite Rave Restaurant and Delta Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rave Restaurant position performs unexpectedly, Delta Oil 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 Delta Oil will offset losses from the drop in Delta Oil'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 |
| Delta Oil vs. Rave Restaurant Group | Delta Oil vs. Shake Shack | Delta Oil vs. Westrock Coffee | Delta Oil vs. The Wendys Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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