Correlation Between COLUMBIA and Rave Restaurant
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By analyzing existing cross correlation between COLUMBIA PIPELINE GROUP and Rave Restaurant Group, you can compare the effects of market volatilities on COLUMBIA and Rave Restaurant 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 COLUMBIA with a short position of Rave Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of COLUMBIA and Rave Restaurant.
Diversification Opportunities for COLUMBIA and Rave Restaurant
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COLUMBIA and Rave is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding COLUMBIA PIPELINE GROUP and Rave Restaurant Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rave Restaurant Group and COLUMBIA 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 COLUMBIA PIPELINE GROUP are associated (or correlated) with Rave Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rave Restaurant Group has no effect on the direction of COLUMBIA i.e., COLUMBIA and Rave Restaurant go up and down completely randomly.
Pair Corralation between COLUMBIA and Rave Restaurant
Assuming the 90 days trading horizon COLUMBIA PIPELINE GROUP is expected to generate 14.2 times more return on investment than Rave Restaurant. However, COLUMBIA is 14.2 times more volatile than Rave Restaurant Group. It trades about 0.04 of its potential returns per unit of risk. Rave Restaurant Group is currently generating about 0.06 per unit of risk. If you would invest 9,894 in COLUMBIA PIPELINE GROUP on September 12, 2024 and sell it today you would lose (33.00) from holding COLUMBIA PIPELINE GROUP or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.96% |
| Values | Daily Returns |
COLUMBIA PIPELINE GROUP vs. Rave Restaurant Group
Performance |
| Timeline |
| COLUMBIA PIPELINE |
| Rave Restaurant Group |
COLUMBIA and Rave Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COLUMBIA and Rave Restaurant
The main advantage of trading using opposite COLUMBIA and Rave Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COLUMBIA position performs unexpectedly, Rave Restaurant 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 Rave Restaurant will offset losses from the drop in Rave Restaurant's long position.| COLUMBIA vs. Valens | COLUMBIA vs. Texas Roadhouse | COLUMBIA vs. Rave Restaurant Group | COLUMBIA vs. ClearOne |
| Rave Restaurant vs. Ark Restaurants Corp | Rave Restaurant vs. One Group Hospitality | Rave Restaurant vs. Flanigans Enterprises | Rave Restaurant vs. Noble Romans |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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