Correlation Between Aramark Holdings and RB Global

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

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

Diversification Opportunities for Aramark Holdings and RB Global

0.58

Correlation Coefficient

Aramark Holdings  RB Global

Very weak diversification

The 3 months correlation between Aramark and RBA is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Aramark Holdings and RB Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RB Global and Aramark Holdings 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 Aramark Holdings are associated (or correlated) with RB Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RB Global has no effect on the direction of Aramark Holdings i.e., Aramark Holdings and RB Global go up and down completely randomly.

Pair Corralation between Aramark Holdings and RB Global

Given the investment horizon of 90 days Aramark Holdings is expected to generate 1.73 times more return on investment than RB Global. However, Aramark Holdings is 1.73 times more volatile than RB Global. It trades about 0.22 of its potential returns per unit of risk. RB Global is currently generating about 0.12 per unit of risk. If you would invest  3,411  in Aramark Holdings on May 4, 2025 and sell it today you would earn a total of  838.00  from holding Aramark Holdings or generate 24.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Aramark Holdings  vs.  RB Global

Aramark Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aramark Holdings are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating primary indicators, Aramark Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

RB Global

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in RB Global are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, RB Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Aramark Holdings and RB Global

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

The idea behind Aramark Holdings and RB Global 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.