Correlation Between RCI Hospitality and One Group
Can any of the company-specific risk be diversified away by investing in both RCI Hospitality and One Group 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 One Group 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 One Group Hospitality, you can compare the effects of market volatilities on RCI Hospitality and One Group 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 One Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCI Hospitality and One Group.
Diversification Opportunities for RCI Hospitality and One Group
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RCI and One is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding RCI Hospitality Holdings and One Group Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Group Hospitality 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 One Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Group Hospitality has no effect on the direction of RCI Hospitality i.e., RCI Hospitality and One Group go up and down completely randomly.
Pair Corralation between RCI Hospitality and One Group
Given the investment horizon of 90 days RCI Hospitality is expected to generate 1.1 times less return on investment than One Group. But when comparing it to its historical volatility, RCI Hospitality Holdings is 1.3 times less risky than One Group. It trades about 0.11 of its potential returns per unit of risk. One Group Hospitality is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 341.00 in One Group Hospitality on November 3, 2024 and sell it today you would earn a total of 34.00 from holding One Group Hospitality or generate 9.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RCI Hospitality Holdings vs. One Group Hospitality
Performance |
| Timeline |
| RCI Hospitality Holdings |
| One Group Hospitality |
RCI Hospitality and One Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCI Hospitality and One Group
The main advantage of trading using opposite RCI Hospitality and One Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCI Hospitality position performs unexpectedly, One Group 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 One Group will offset losses from the drop in One Group's long position.| RCI Hospitality vs. Brinker International | RCI Hospitality vs. Bloomin Brands | RCI Hospitality vs. BJs Restaurants | RCI Hospitality vs. Dennys Corp |
| One Group vs. FAT Brands | One Group vs. Potbelly Co | One Group vs. BJs Restaurants | One Group vs. Rave Restaurant Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |