Correlation Between RBC Bearings and Aramark Holdings
Can any of the company-specific risk be diversified away by investing in both RBC Bearings and Aramark Holdings 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 RBC Bearings and Aramark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RBC Bearings Incorporated and Aramark Holdings, you can compare the effects of market volatilities on RBC Bearings and Aramark Holdings 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 RBC Bearings with a short position of Aramark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Bearings and Aramark Holdings.
Diversification Opportunities for RBC Bearings and Aramark Holdings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between RBC and Aramark is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding RBC Bearings Incorporated and Aramark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aramark Holdings and RBC Bearings 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 RBC Bearings Incorporated are associated (or correlated) with Aramark Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aramark Holdings has no effect on the direction of RBC Bearings i.e., RBC Bearings and Aramark Holdings go up and down completely randomly.
Pair Corralation between RBC Bearings and Aramark Holdings
Considering the 90-day investment horizon RBC Bearings Incorporated is expected to generate 1.39 times more return on investment than Aramark Holdings. However, RBC Bearings is 1.39 times more volatile than Aramark Holdings. It trades about 0.08 of its potential returns per unit of risk. Aramark Holdings is currently generating about -0.02 per unit of risk. If you would invest 39,893 in RBC Bearings Incorporated on August 16, 2025 and sell it today you would earn a total of 3,262 from holding RBC Bearings Incorporated or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RBC Bearings Incorporated vs. Aramark Holdings
Performance |
| Timeline |
| RBC Bearings |
| Aramark Holdings |
RBC Bearings and Aramark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Bearings and Aramark Holdings
The main advantage of trading using opposite RBC Bearings and Aramark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Bearings position performs unexpectedly, Aramark Holdings 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 Aramark Holdings will offset losses from the drop in Aramark Holdings' long position.| RBC Bearings vs. Lincoln Electric Holdings | RBC Bearings vs. Allegheny Technologies Incorporated | RBC Bearings vs. Graco Inc | RBC Bearings vs. Avery Dennison Corp |
| Aramark Holdings vs. Donaldson | Aramark Holdings vs. Core Main | Aramark Holdings vs. Pool Corporation | Aramark Holdings vs. Applied Industrial Technologies |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |