Correlation Between APPLE and RCI Hospitality
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By analyzing existing cross correlation between APPLE INC 425 and RCI Hospitality Holdings, you can compare the effects of market volatilities on APPLE and RCI Hospitality 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 APPLE with a short position of RCI Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of APPLE and RCI Hospitality.
Diversification Opportunities for APPLE and RCI Hospitality
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between APPLE and RCI is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding APPLE INC 425 and RCI Hospitality Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCI Hospitality Holdings and APPLE 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 APPLE INC 425 are associated (or correlated) with RCI Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCI Hospitality Holdings has no effect on the direction of APPLE i.e., APPLE and RCI Hospitality go up and down completely randomly.
Pair Corralation between APPLE and RCI Hospitality
Assuming the 90 days trading horizon APPLE INC 425 is expected to under-perform the RCI Hospitality. But the bond apears to be less risky and, when comparing its historical volatility, APPLE INC 425 is 2.16 times less risky than RCI Hospitality. The bond trades about -0.05 of its potential returns per unit of risk. The RCI Hospitality Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,385 in RCI Hospitality Holdings on September 2, 2024 and sell it today you would earn a total of 861.00 from holding RCI Hospitality Holdings or generate 19.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
APPLE INC 425 vs. RCI Hospitality Holdings
Performance |
| Timeline |
| APPLE INC 425 |
| RCI Hospitality Holdings |
APPLE and RCI Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APPLE and RCI Hospitality
The main advantage of trading using opposite APPLE and RCI Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APPLE position performs unexpectedly, RCI Hospitality 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 RCI Hospitality will offset losses from the drop in RCI Hospitality's long position.| APPLE vs. RCI Hospitality Holdings | APPLE vs. Park Hotels Resorts | APPLE vs. AMCON Distributing | APPLE vs. BJs Restaurants |
| RCI Hospitality vs. Brinker International | RCI Hospitality vs. Bloomin Brands | RCI Hospitality vs. BJs Restaurants | RCI Hospitality vs. Dennys Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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