Correlation Between RCI Hospitality and EXELON
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By analyzing existing cross correlation between RCI Hospitality Holdings and EXELON GENERATION LLC, you can compare the effects of market volatilities on RCI Hospitality and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCI Hospitality and EXELON.
Diversification Opportunities for RCI Hospitality and EXELON
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RCI and EXELON is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding RCI Hospitality Holdings and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of RCI Hospitality i.e., RCI Hospitality and EXELON go up and down completely randomly.
Pair Corralation between RCI Hospitality and EXELON
Given the investment horizon of 90 days RCI Hospitality Holdings is expected to generate 1.3 times more return on investment than EXELON. However, RCI Hospitality is 1.3 times more volatile than EXELON GENERATION LLC. It trades about 0.12 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about -0.03 per unit of risk. If you would invest 5,020 in RCI Hospitality Holdings on September 14, 2024 and sell it today you would earn a total of 210.00 from holding RCI Hospitality Holdings or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
RCI Hospitality Holdings vs. EXELON GENERATION LLC
Performance |
| Timeline |
| RCI Hospitality Holdings |
| EXELON GENERATION LLC |
RCI Hospitality and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCI Hospitality and EXELON
The main advantage of trading using opposite RCI Hospitality and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCI Hospitality position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| RCI Hospitality vs. Brinker International | RCI Hospitality vs. Bloomin Brands | RCI Hospitality vs. BJs Restaurants | RCI Hospitality vs. Dennys Corp |
| EXELON vs. AEP TEX INC | EXELON vs. US BANK NATIONAL | EXELON vs. PayPal Holdings | EXELON vs. Alphabet Inc Class C |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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