Correlation Between RB Food and Ratch Group

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Can any of the company-specific risk be diversified away by investing in both RB Food and Ratch Group 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 RB Food and Ratch Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RB Food Supply and Ratch Group Public, you can compare the effects of market volatilities on RB Food and Ratch Group 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 RB Food with a short position of Ratch Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of RB Food and Ratch Group.

Diversification Opportunities for RB Food and Ratch Group

-0.57
  Correlation Coefficient

Excellent diversification

The 3 months correlation between RBF and Ratch is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding RB Food Supply and Ratch Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratch Group Public and RB Food 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 RB Food Supply are associated (or correlated) with Ratch Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratch Group Public has no effect on the direction of RB Food i.e., RB Food and Ratch Group go up and down completely randomly.

Pair Corralation between RB Food and Ratch Group

Assuming the 90 days trading horizon RB Food Supply is expected to under-perform the Ratch Group. In addition to that, RB Food is 1.66 times more volatile than Ratch Group Public. It trades about -0.11 of its total potential returns per unit of risk. Ratch Group Public is currently generating about 0.17 per unit of volatility. If you would invest  2,700  in Ratch Group Public on November 1, 2025 and sell it today you would earn a total of  375.00  from holding Ratch Group Public or generate 13.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

RB Food Supply  vs.  Ratch Group Public

 Performance 
       Timeline  
RB Food Supply 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days RB Food Supply has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in March 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Ratch Group Public 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ratch Group Public are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Ratch Group sustained solid returns over the last few months and may actually be approaching a breakup point.

RB Food and Ratch Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with RB Food and Ratch Group

The main advantage of trading using opposite RB Food and Ratch Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RB Food position performs unexpectedly, Ratch Group 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 Ratch Group will offset losses from the drop in Ratch Group's long position.
The idea behind RB Food Supply and Ratch Group Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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