Correlation Between RCI Hospitality and GWILLI FOOD
Can any of the company-specific risk be diversified away by investing in both RCI Hospitality and GWILLI FOOD 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 GWILLI FOOD 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 GWILLI FOOD, you can compare the effects of market volatilities on RCI Hospitality and GWILLI FOOD 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 GWILLI FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCI Hospitality and GWILLI FOOD.
Diversification Opportunities for RCI Hospitality and GWILLI FOOD
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between RCI and GWILLI is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding RCI Hospitality Holdings and GWILLI FOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWILLI FOOD 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 GWILLI FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWILLI FOOD has no effect on the direction of RCI Hospitality i.e., RCI Hospitality and GWILLI FOOD go up and down completely randomly.
Pair Corralation between RCI Hospitality and GWILLI FOOD
Assuming the 90 days trading horizon RCI Hospitality Holdings is expected to under-perform the GWILLI FOOD. But the stock apears to be less risky and, when comparing its historical volatility, RCI Hospitality Holdings is 1.23 times less risky than GWILLI FOOD. The stock trades about -0.23 of its potential returns per unit of risk. The GWILLI FOOD is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,580 in GWILLI FOOD on October 29, 2024 and sell it today you would lose (20.00) from holding GWILLI FOOD or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RCI Hospitality Holdings vs. GWILLI FOOD
Performance |
| Timeline |
| RCI Hospitality Holdings |
| GWILLI FOOD |
RCI Hospitality and GWILLI FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCI Hospitality and GWILLI FOOD
The main advantage of trading using opposite RCI Hospitality and GWILLI FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCI Hospitality position performs unexpectedly, GWILLI FOOD 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 GWILLI FOOD will offset losses from the drop in GWILLI FOOD's long position.| RCI Hospitality vs. Iridium Communications | RCI Hospitality vs. Singapore Telecommunications Limited | RCI Hospitality vs. CarsalesCom | RCI Hospitality vs. Ribbon Communications |
| GWILLI FOOD vs. Goodyear Tire Rubber | GWILLI FOOD vs. Martin Marietta Materials | GWILLI FOOD vs. INTER CARS SA | GWILLI FOOD vs. Commercial Vehicle 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |