Correlation Between RCI Hospitality and China Clean
Can any of the company-specific risk be diversified away by investing in both RCI Hospitality and China Clean 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 China Clean 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 China Clean Energy, you can compare the effects of market volatilities on RCI Hospitality and China Clean 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 China Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCI Hospitality and China Clean.
Diversification Opportunities for RCI Hospitality and China Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RCI and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RCI Hospitality Holdings and China Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Clean Energy 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 China Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Clean Energy has no effect on the direction of RCI Hospitality i.e., RCI Hospitality and China Clean go up and down completely randomly.
Pair Corralation between RCI Hospitality and China Clean
If you would invest 4,477 in RCI Hospitality Holdings on September 3, 2024 and sell it today you would earn a total of 769.00 from holding RCI Hospitality Holdings or generate 17.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
RCI Hospitality Holdings vs. China Clean Energy
Performance |
| Timeline |
| RCI Hospitality Holdings |
| China Clean Energy |
RCI Hospitality and China Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCI Hospitality and China Clean
The main advantage of trading using opposite RCI Hospitality and China Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCI Hospitality position performs unexpectedly, China Clean 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 China Clean will offset losses from the drop in China Clean's long position.| RCI Hospitality vs. Brinker International | RCI Hospitality vs. Bloomin Brands | RCI Hospitality vs. BJs Restaurants | RCI Hospitality vs. Dennys Corp |
| China Clean vs. Sherwin Williams Co | China Clean vs. Air Liquide SA | China Clean vs. LAir Liquide SA | China Clean vs. Air Products and |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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