Correlation Between Rave Restaurant and Mountain Crest
Can any of the company-specific risk be diversified away by investing in both Rave Restaurant and Mountain Crest 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 Mountain Crest 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 Mountain Crest Acquisition, you can compare the effects of market volatilities on Rave Restaurant and Mountain Crest 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 Mountain Crest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rave Restaurant and Mountain Crest.
Diversification Opportunities for Rave Restaurant and Mountain Crest
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rave and Mountain is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Rave Restaurant Group and Mountain Crest Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Crest Acqui 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 Mountain Crest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Crest Acqui has no effect on the direction of Rave Restaurant i.e., Rave Restaurant and Mountain Crest go up and down completely randomly.
Pair Corralation between Rave Restaurant and Mountain Crest
If you would invest (100.00) in Mountain Crest Acquisition on October 22, 2024 and sell it today you would earn a total of 100.00 from holding Mountain Crest Acquisition or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Rave Restaurant Group vs. Mountain Crest Acquisition
Performance |
| Timeline |
| Rave Restaurant Group |
| Mountain Crest Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rave Restaurant and Mountain Crest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rave Restaurant and Mountain Crest
The main advantage of trading using opposite Rave Restaurant and Mountain Crest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rave Restaurant position performs unexpectedly, Mountain Crest 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 Mountain Crest will offset losses from the drop in Mountain Crest'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 |
| Mountain Crest vs. BJs Restaurants | Mountain Crest vs. Celestica | Mountain Crest vs. Jabil Circuit | Mountain Crest 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |