Correlation Between Red Cat and SYSCO
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By analyzing existing cross correlation between Red Cat Holdings and SYSCO P 445, you can compare the effects of market volatilities on Red Cat and SYSCO 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 Red Cat with a short position of SYSCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Cat and SYSCO.
Diversification Opportunities for Red Cat and SYSCO
Very good diversification
The 3 months correlation between Red and SYSCO is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Red Cat Holdings and SYSCO P 445 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSCO P 445 and Red Cat 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 Red Cat Holdings are associated (or correlated) with SYSCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSCO P 445 has no effect on the direction of Red Cat i.e., Red Cat and SYSCO go up and down completely randomly.
Pair Corralation between Red Cat and SYSCO
Given the investment horizon of 90 days Red Cat Holdings is expected to generate 5.31 times more return on investment than SYSCO. However, Red Cat is 5.31 times more volatile than SYSCO P 445. It trades about 0.25 of its potential returns per unit of risk. SYSCO P 445 is currently generating about 0.09 per unit of risk. If you would invest 99.00 in Red Cat Holdings on August 25, 2024 and sell it today you would earn a total of 631.00 from holding Red Cat Holdings or generate 637.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.7% |
| Values | Daily Returns |
Red Cat Holdings vs. SYSCO P 445
Performance |
| Timeline |
| Red Cat Holdings |
| SYSCO P 445 |
Red Cat and SYSCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Cat and SYSCO
The main advantage of trading using opposite Red Cat and SYSCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Cat position performs unexpectedly, SYSCO 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 SYSCO will offset losses from the drop in SYSCO's long position.| Red Cat vs. Quantum Computing | Red Cat vs. Rigetti Computing | Red Cat vs. D Wave Quantum | Red Cat vs. AstroNova |
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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