Correlation Between RCI Hospitality and Pingtan Marine
Can any of the company-specific risk be diversified away by investing in both RCI Hospitality and Pingtan Marine 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 Pingtan Marine 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 Pingtan Marine Enterprise, you can compare the effects of market volatilities on RCI Hospitality and Pingtan Marine 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 Pingtan Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCI Hospitality and Pingtan Marine.
Diversification Opportunities for RCI Hospitality and Pingtan Marine
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RCI and Pingtan is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding RCI Hospitality Holdings and Pingtan Marine Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pingtan Marine Enterprise 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 Pingtan Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pingtan Marine Enterprise has no effect on the direction of RCI Hospitality i.e., RCI Hospitality and Pingtan Marine go up and down completely randomly.
Pair Corralation between RCI Hospitality and Pingtan Marine
If you would invest 5,067 in RCI Hospitality Holdings on September 12, 2024 and sell it today you would earn a total of 142.00 from holding RCI Hospitality Holdings or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
RCI Hospitality Holdings vs. Pingtan Marine Enterprise
Performance |
| Timeline |
| RCI Hospitality Holdings |
| Pingtan Marine Enterprise |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
RCI Hospitality and Pingtan Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCI Hospitality and Pingtan Marine
The main advantage of trading using opposite RCI Hospitality and Pingtan Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCI Hospitality position performs unexpectedly, Pingtan Marine 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 Pingtan Marine will offset losses from the drop in Pingtan Marine's long position.| RCI Hospitality vs. Brinker International | RCI Hospitality vs. Bloomin Brands | RCI Hospitality vs. BJs Restaurants | RCI Hospitality vs. Dennys Corp |
| Pingtan Marine vs. Dennys Corp | Pingtan Marine vs. Arhaus Inc | Pingtan Marine vs. RCI Hospitality Holdings | Pingtan Marine vs. Shake Shack |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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