Correlation Between RCI Hospitality and INTNED

Can any of the company-specific risk be diversified away by investing in both RCI Hospitality and INTNED 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 INTNED 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 INTNED 61032 28 MAR 26, you can compare the effects of market volatilities on RCI Hospitality and INTNED 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 INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCI Hospitality and INTNED.

Diversification Opportunities for RCI Hospitality and INTNED

-0.22

Correlation Coefficient

RCI Hospitality  INTNED

Very good diversification

The 3 months correlation between RCI and INTNED is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding RCI Hospitality Holdings and INTNED 61032 28 MAR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 61032 28 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 INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 61032 28 has no effect on the direction of RCI Hospitality i.e., RCI Hospitality and INTNED go up and down completely randomly.

Pair Corralation between RCI Hospitality and INTNED

Given the investment horizon of 90 days RCI Hospitality Holdings is expected to generate 3.92 times more return on investment than INTNED. However, RCI Hospitality is 3.92 times more volatile than INTNED 61032 28 MAR 26. It trades about 0.02 of its potential returns per unit of risk. INTNED 61032 28 MAR 26 is currently generating about -0.03 per unit of risk. If you would invest  5,517  in RCI Hospitality Holdings on September 20, 2024 and sell it today you would earn a total of  175.00  from holding RCI Hospitality Holdings or generate 3.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	41.49%
Values	Daily Returns

RCI Hospitality Holdings  vs.  INTNED 61032 28 MAR 26

RCI Hospitality Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RCI Hospitality Holdings are ranked lower than 11 (%) 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.

INTNED 61032 28

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 61032 28 MAR 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with RCI Hospitality and INTNED

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

The idea behind RCI Hospitality Holdings and INTNED 61032 28 MAR 26 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.