Correlation Between Whitbread Plc and Rivalry Corp
Can any of the company-specific risk be diversified away by investing in both Whitbread Plc and Rivalry Corp 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 Whitbread Plc and Rivalry Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whitbread plc and Rivalry Corp, you can compare the effects of market volatilities on Whitbread Plc and Rivalry Corp 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 Whitbread Plc with a short position of Rivalry Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitbread Plc and Rivalry Corp.
Diversification Opportunities for Whitbread Plc and Rivalry Corp
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Whitbread and Rivalry is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Whitbread plc and Rivalry Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rivalry Corp and Whitbread Plc 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 Whitbread plc are associated (or correlated) with Rivalry Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rivalry Corp has no effect on the direction of Whitbread Plc i.e., Whitbread Plc and Rivalry Corp go up and down completely randomly.
Pair Corralation between Whitbread Plc and Rivalry Corp
Assuming the 90 days horizon Whitbread plc is expected to under-perform the Rivalry Corp. But the pink sheet apears to be less risky and, when comparing its historical volatility, Whitbread plc is 35.13 times less risky than Rivalry Corp. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Rivalry Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Rivalry Corp on November 23, 2025 and sell it today you would lose (1.70) from holding Rivalry Corp or give up 68.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
Whitbread plc vs. Rivalry Corp
Performance |
| Timeline |
| Whitbread plc |
| Rivalry Corp |
Whitbread Plc and Rivalry Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitbread Plc and Rivalry Corp
The main advantage of trading using opposite Whitbread Plc and Rivalry Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitbread Plc position performs unexpectedly, Rivalry Corp 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 Rivalry Corp will offset losses from the drop in Rivalry Corp's long position.| Whitbread Plc vs. Pool Safe | Whitbread Plc vs. Renovate Neighborhoods | Whitbread Plc vs. Littlefield | Whitbread Plc vs. Luvu Brands |
| Rivalry Corp vs. Elray Resources | Rivalry Corp vs. Good Vibrations Shoes | Rivalry Corp vs. Eastern Asteria | Rivalry Corp vs. Bravo Multinational |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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