Correlation Between Rave Restaurant and EXELON
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By analyzing existing cross correlation between Rave Restaurant Group and EXELON GENERATION LLC, you can compare the effects of market volatilities on Rave Restaurant and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rave Restaurant and EXELON.
Diversification Opportunities for Rave Restaurant and EXELON
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rave and EXELON is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Rave Restaurant Group and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of Rave Restaurant i.e., Rave Restaurant and EXELON go up and down completely randomly.
Pair Corralation between Rave Restaurant and EXELON
Given the investment horizon of 90 days Rave Restaurant Group is expected to generate 2.99 times more return on investment than EXELON. However, Rave Restaurant is 2.99 times more volatile than EXELON GENERATION LLC. It trades about 0.04 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about 0.02 per unit of risk. If you would invest 249.00 in Rave Restaurant Group on September 14, 2024 and sell it today you would earn a total of 53.00 from holding Rave Restaurant Group or generate 21.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.8% |
| Values | Daily Returns |
Rave Restaurant Group vs. EXELON GENERATION LLC
Performance |
| Timeline |
| Rave Restaurant Group |
| EXELON GENERATION LLC |
Rave Restaurant and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rave Restaurant and EXELON
The main advantage of trading using opposite Rave Restaurant and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rave Restaurant position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON'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 |
| EXELON vs. AEP TEX INC | EXELON vs. US BANK NATIONAL | EXELON vs. PayPal Holdings | EXELON vs. Alphabet Inc Class C |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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