Correlation Between RCI Hospitality and Rubrik,

Can any of the company-specific risk be diversified away by investing in both RCI Hospitality and Rubrik, 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 RCI Hospitality and Rubrik, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between RCI Hospitality Holdings and Rubrik,, you can compare the effects of market volatilities on RCI Hospitality and Rubrik, 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 RCI Hospitality with a short position of Rubrik,. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCI Hospitality and Rubrik,.

Diversification Opportunities for RCI Hospitality and Rubrik,

0.78

Correlation Coefficient

RCI Hospitality  Rubrik,

Poor diversification

The 3 months correlation between RCI and Rubrik, is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding RCI Hospitality Holdings and Rubrik, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubrik, and RCI 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 RCI Hospitality Holdings are associated (or correlated) with Rubrik,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubrik, has no effect on the direction of RCI Hospitality i.e., RCI Hospitality and Rubrik, go up and down completely randomly.

Pair Corralation between RCI Hospitality and Rubrik,

Given the investment horizon of 90 days RCI Hospitality Holdings is expected to under-perform the Rubrik,. But the stock apears to be less risky and, when comparing its historical volatility, RCI Hospitality Holdings is 1.78 times less risky than Rubrik,. The stock trades about -0.04 of its potential returns per unit of risk. The Rubrik, is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  3,200  in Rubrik, on September 13, 2024 and sell it today you would earn a total of  3,723  from holding Rubrik, or generate 116.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	32.59%
Values	Daily Returns

RCI Hospitality Holdings  vs.  Rubrik,

RCI Hospitality Holdings

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in RCI Hospitality Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain fundamental indicators, RCI Hospitality disclosed solid returns over the last few months and may actually be approaching a breakup point.

Rubrik,

Risk-Adjusted Performance

29 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Rubrik, are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Rubrik, disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RCI Hospitality and Rubrik,

The main advantage of trading using opposite RCI Hospitality and Rubrik, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCI Hospitality position performs unexpectedly, Rubrik, 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 Rubrik, will offset losses from the drop in Rubrik,'s long position.

The idea behind RCI Hospitality Holdings and Rubrik, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.