Correlation Between CARRIER and RCI Hospitality
Specify exactly 2 symbols:
By analyzing existing cross correlation between CARRIER GLOBAL P and RCI Hospitality Holdings, you can compare the effects of market volatilities on CARRIER 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 CARRIER with a short position of RCI Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARRIER and RCI Hospitality.
Diversification Opportunities for CARRIER and RCI Hospitality
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CARRIER and RCI is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CARRIER GLOBAL P 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 CARRIER 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 CARRIER GLOBAL P 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 CARRIER i.e., CARRIER and RCI Hospitality go up and down completely randomly.
Pair Corralation between CARRIER and RCI Hospitality
Assuming the 90 days trading horizon CARRIER GLOBAL P is expected to generate 0.17 times more return on investment than RCI Hospitality. However, CARRIER GLOBAL P is 5.77 times less risky than RCI Hospitality. It trades about 0.04 of its potential returns per unit of risk. RCI Hospitality Holdings is currently generating about -0.02 per unit of risk. If you would invest 8,474 in CARRIER GLOBAL P on September 3, 2024 and sell it today you would earn a total of 346.00 from holding CARRIER GLOBAL P or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
CARRIER GLOBAL P vs. RCI Hospitality Holdings
Performance |
| Timeline |
| CARRIER GLOBAL P |
| RCI Hospitality Holdings |
CARRIER and RCI Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARRIER and RCI Hospitality
The main advantage of trading using opposite CARRIER and RCI Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARRIER 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.| CARRIER vs. IPG Photonics | CARRIER vs. Everspin Technologies | CARRIER vs. ON Semiconductor | CARRIER vs. Vishay Intertechnology |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |