Correlation Between Rave Restaurant and AMERICAN FUNDS

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Rave Restaurant and AMERICAN FUNDS 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 Rave Restaurant and AMERICAN FUNDS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rave Restaurant Group and AMERICAN FUNDS 2010, you can compare the effects of market volatilities on Rave Restaurant and AMERICAN FUNDS 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 Rave Restaurant with a short position of AMERICAN FUNDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rave Restaurant and AMERICAN FUNDS.

Diversification Opportunities for Rave Restaurant and AMERICAN FUNDS

  Correlation Coefficient

Good diversification

The 3 months correlation between Rave Restaurant and AMERICAN is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Rave Restaurant Group and AMERICAN FUNDS 2010 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN FUNDS 2010 and Rave Restaurant 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 Rave Restaurant Group are associated (or correlated) with AMERICAN FUNDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN FUNDS 2010 has no effect on the direction of Rave Restaurant i.e., Rave Restaurant and AMERICAN FUNDS go up and down completely randomly.

Pair Corralation between Rave Restaurant and AMERICAN FUNDS

Given the investment horizon of 90 days Rave Restaurant is expected to generate 1.04 times less return on investment than AMERICAN FUNDS. In addition to that, Rave Restaurant is 3.84 times more volatile than AMERICAN FUNDS 2010. It trades about 0.07 of its total potential returns per unit of risk. AMERICAN FUNDS 2010 is currently generating about 0.26 per unit of volatility. If you would invest  1,082  in AMERICAN FUNDS 2010 on September 10, 2022 and sell it today you would earn a total of  45.00  from holding AMERICAN FUNDS 2010 or generate 4.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

Rave Restaurant Group  vs.  AMERICAN FUNDS 2010

 Performance (%) 
Rave Restaurant Group 
Rave Restaurant Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Rave Restaurant Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Rave Restaurant exhibited solid returns over the last few months and may actually be approaching a breakup point.

Rave Restaurant Price Channel

AMERICAN Performance
0 of 100
Over the last 90 days AMERICAN FUNDS 2010 has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, AMERICAN FUNDS is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

AMERICAN Price Channel

Rave Restaurant and AMERICAN FUNDS Volatility Contrast

   Predicted Return Density   

Pair Trading with Rave Restaurant and AMERICAN FUNDS

The main advantage of trading using opposite Rave Restaurant and AMERICAN FUNDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rave Restaurant position performs unexpectedly, AMERICAN FUNDS 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 AMERICAN FUNDS will offset losses from the drop in AMERICAN FUNDS's long position.
Rave Restaurant vs. HeidelbergCement AG ADR
Rave Restaurant vs. Disco Corp ADR
Rave Restaurant vs. Applied Materials
Rave Restaurant vs. Lasertec
The idea behind Rave Restaurant Group and AMERICAN FUNDS 2010 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.
AMERICAN FUNDS vs. Dallasnews Corp
AMERICAN FUNDS vs. Oramed Pharmaceuticals
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Other Complementary Tools

Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges