Correlation Between RCI Hospitality and SP 500
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By analyzing existing cross correlation between RCI Hospitality Holdings and SP 500 Retailing, you can compare the effects of market volatilities on RCI Hospitality and SP 500 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 RCI Hospitality with a short position of SP 500. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCI Hospitality and SP 500.
Diversification Opportunities for RCI Hospitality and SP 500
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between RCI and 5SP2550 is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding RCI Hospitality Holdings and SP 500 Retailing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP 500 Retailing and RCI Hospitality 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 RCI Hospitality Holdings are associated (or correlated) with SP 500. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP 500 Retailing has no effect on the direction of RCI Hospitality i.e., RCI Hospitality and SP 500 go up and down completely randomly.
Pair Corralation between RCI Hospitality and SP 500
Given the investment horizon of 90 days RCI Hospitality is expected to generate 2.86 times less return on investment than SP 500. In addition to that, RCI Hospitality is 1.3 times more volatile than SP 500 Retailing. It trades about 0.06 of its total potential returns per unit of risk. SP 500 Retailing is currently generating about 0.24 per unit of volatility. If you would invest 502,190 in SP 500 Retailing on September 13, 2024 and sell it today you would earn a total of 32,749 from holding SP 500 Retailing or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RCI Hospitality Holdings vs. SP 500 Retailing
Performance |
| Timeline |
RCI Hospitality and SP 500 Volatility Contrast
Predicted Return Density |
| Returns |
RCI Hospitality Holdings
Pair trading matchups for RCI Hospitality
SP 500 Retailing
Pair trading matchups for SP 500
Pair Trading with RCI Hospitality and SP 500
The main advantage of trading using opposite RCI Hospitality and SP 500 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCI Hospitality position performs unexpectedly, SP 500 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 SP 500 will offset losses from the drop in SP 500's long position.| RCI Hospitality vs. Brinker International | RCI Hospitality vs. Bloomin Brands | RCI Hospitality vs. BJs Restaurants | RCI Hospitality vs. Dennys Corp |
| SP 500 vs. Barrick Gold Corp | SP 500 vs. Dine Brands Global | SP 500 vs. Highway Holdings Limited | SP 500 vs. Kaltura |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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