Correlation Between Rio2 and Red Robin
Can any of the company-specific risk be diversified away by investing in both Rio2 and Red Robin 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 Rio2 and Red Robin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rio2 and Red Robin Gourmet, you can compare the effects of market volatilities on Rio2 and Red Robin 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 Rio2 with a short position of Red Robin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rio2 and Red Robin.
Diversification Opportunities for Rio2 and Red Robin
Pay attention - limited upside
The 3 months correlation between Rio2 and Red is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Rio2 and Red Robin Gourmet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Robin Gourmet and Rio2 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 Rio2 are associated (or correlated) with Red Robin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Robin Gourmet has no effect on the direction of Rio2 i.e., Rio2 and Red Robin go up and down completely randomly.
Pair Corralation between Rio2 and Red Robin
Assuming the 90 days trading horizon Rio2 is expected to generate 1.12 times more return on investment than Red Robin. However, Rio2 is 1.12 times more volatile than Red Robin Gourmet. It trades about 0.13 of its potential returns per unit of risk. Red Robin Gourmet is currently generating about -0.16 per unit of risk. If you would invest 182.00 in Rio2 on August 29, 2025 and sell it today you would earn a total of 58.00 from holding Rio2 or generate 31.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rio2 vs. Red Robin Gourmet
Performance |
| Timeline |
| Rio2 |
| Red Robin Gourmet |
Rio2 and Red Robin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rio2 and Red Robin
The main advantage of trading using opposite Rio2 and Red Robin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rio2 position performs unexpectedly, Red Robin 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 Red Robin will offset losses from the drop in Red Robin's long position.| Rio2 vs. Brookfield Asset Management | Rio2 vs. Mayfair Acquisition | Rio2 vs. Hill Street Beverage | Rio2 vs. East Side Games |
| Red Robin vs. Cardinal Health | Red Robin vs. Yokohama Rubber Co | Red Robin vs. Vulcan Materials | Red Robin vs. Reo Plastics |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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