Correlation Between RBC Bearings and KROGER
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By analyzing existing cross correlation between RBC Bearings Incorporated and KROGER 35 percent, you can compare the effects of market volatilities on RBC Bearings 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 RBC Bearings with a short position of KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Bearings and KROGER.
Diversification Opportunities for RBC Bearings and KROGER
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between RBC and KROGER is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding RBC Bearings Incorporated and KROGER 35 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 35 percent and RBC Bearings 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 RBC Bearings Incorporated 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 35 percent has no effect on the direction of RBC Bearings i.e., RBC Bearings and KROGER go up and down completely randomly.
Pair Corralation between RBC Bearings and KROGER
Considering the 90-day investment horizon RBC Bearings Incorporated is expected to generate 2.71 times more return on investment than KROGER. However, RBC Bearings is 2.71 times more volatile than KROGER 35 percent. It trades about 0.37 of its potential returns per unit of risk. KROGER 35 percent is currently generating about -0.2 per unit of risk. If you would invest 28,502 in RBC Bearings Incorporated on September 4, 2024 and sell it today you would earn a total of 5,601 from holding RBC Bearings Incorporated or generate 19.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
RBC Bearings Incorporated vs. KROGER 35 percent
Performance |
| Timeline |
| RBC Bearings |
| KROGER 35 percent |
RBC Bearings and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Bearings and KROGER
The main advantage of trading using opposite RBC Bearings and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Bearings 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.| RBC Bearings vs. Lincoln Electric Holdings | RBC Bearings vs. Kennametal | RBC Bearings vs. Toro Co | RBC Bearings vs. Snap On |
| KROGER vs. Weyco Group | KROGER vs. Eastern Co | KROGER vs. RBC Bearings Incorporated | KROGER vs. Tower One Wireless |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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