Correlation Between Rave Restaurant and KROGER
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By analyzing existing cross correlation between Rave Restaurant Group and KROGER 465 percent, you can compare the effects of market volatilities on Rave Restaurant and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rave Restaurant and KROGER.
Diversification Opportunities for Rave Restaurant and KROGER
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rave and KROGER is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Rave Restaurant Group and KROGER 465 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 465 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 465 percent has no effect on the direction of Rave Restaurant i.e., Rave Restaurant and KROGER go up and down completely randomly.
Pair Corralation between Rave Restaurant and KROGER
Given the investment horizon of 90 days Rave Restaurant Group is expected to generate 3.6 times more return on investment than KROGER. However, Rave Restaurant is 3.6 times more volatile than KROGER 465 percent. It trades about 0.18 of its potential returns per unit of risk. KROGER 465 percent is currently generating about 0.02 per unit of risk. If you would invest 234.00 in Rave Restaurant Group on September 3, 2024 and sell it today you would earn a total of 67.00 from holding Rave Restaurant Group or generate 28.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.76% |
| Values | Daily Returns |
Rave Restaurant Group vs. KROGER 465 percent
Performance |
| Timeline |
| Rave Restaurant Group |
| KROGER 465 percent |
Rave Restaurant and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rave Restaurant and KROGER
The main advantage of trading using opposite Rave Restaurant and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rave Restaurant position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER'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 |
| KROGER vs. NetEase | KROGER vs. Rave Restaurant Group | KROGER vs. The Cheesecake Factory | KROGER 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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