Correlation Between Ruths Hospitality and One Group
Can any of the company-specific risk be diversified away by investing in both Ruths 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 Ruths 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 Ruths Hospitality Group and One Group Hospitality, you can compare the effects of market volatilities on Ruths 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 Ruths Hospitality with a short position of One Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ruths Hospitality and One Group.
Diversification Opportunities for Ruths Hospitality and One Group
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ruths and One is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ruths Hospitality Group 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 Ruths 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 Ruths Hospitality Group 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 Ruths Hospitality i.e., Ruths Hospitality and One Group go up and down completely randomly.
Pair Corralation between Ruths Hospitality and One Group
If you would invest 352.00 in One Group Hospitality on August 28, 2024 and sell it today you would earn a total of 1.00 from holding One Group Hospitality or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ruths Hospitality Group vs. One Group Hospitality
Performance |
| Timeline |
| Ruths Hospitality |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| One Group Hospitality |
Ruths Hospitality and One Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ruths Hospitality and One Group
The main advantage of trading using opposite Ruths Hospitality and One Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ruths 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.| Ruths Hospitality vs. Dine Brands Global | Ruths Hospitality vs. Bloomin Brands | Ruths Hospitality vs. BJs Restaurants | Ruths Hospitality vs. The Cheesecake Factory |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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