Correlation Between RCI Hospitality and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both RCI Hospitality and Altimar Acquisition 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 RCI Hospitality and Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RCI Hospitality Holdings and Altimar Acquisition Corp, you can compare the effects of market volatilities on RCI Hospitality and Altimar Acquisition 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 Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCI Hospitality and Altimar Acquisition.
Diversification Opportunities for RCI Hospitality and Altimar Acquisition
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between RCI and Altimar is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding RCI Hospitality Holdings and Altimar Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altimar Acquisition Corp 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 Altimar Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altimar Acquisition Corp has no effect on the direction of RCI Hospitality i.e., RCI Hospitality and Altimar Acquisition go up and down completely randomly.
Pair Corralation between RCI Hospitality and Altimar Acquisition
If you would invest 4,328 in RCI Hospitality Holdings on September 3, 2024 and sell it today you would earn a total of 918.00 from holding RCI Hospitality Holdings or generate 21.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
RCI Hospitality Holdings vs. Altimar Acquisition Corp
Performance |
| Timeline |
| RCI Hospitality Holdings |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
RCI Hospitality and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCI Hospitality and Altimar Acquisition
The main advantage of trading using opposite RCI Hospitality and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCI Hospitality position performs unexpectedly, Altimar Acquisition 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 Altimar Acquisition will offset losses from the drop in Altimar Acquisition's long position.| RCI Hospitality vs. Brinker International | RCI Hospitality vs. Bloomin Brands | RCI Hospitality vs. BJs Restaurants | RCI Hospitality vs. Dennys Corp |
| Altimar Acquisition vs. Udemy Inc | Altimar Acquisition vs. Coursera | Altimar Acquisition vs. Bright Scholar Education | Altimar Acquisition vs. Sun Country Airlines |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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