Arcos Competitors
| ARCO Stock | USD 8.18 0.04 0.49% |
Arcos Dorados vs SUPER HI Correlation
Excellent diversification
The correlation between Arcos Dorados Holdings and HDL is -0.53 (i.e., Excellent diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Arcos Dorados Holdings and HDL in the same portfolio, assuming nothing else is changed.
Moving against Arcos Stock
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Arcos Dorados' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Arcos Dorados Competition Correlation Matrix
Typically, diversification allows investors to combine positions across different asset classes to reduce overall portfolio risk. Correlation between Arcos Dorados and its competitors represents the degree of relationship between the price movements of corresponding stocks. A correlation of about +1.0 implies that the price of Arcos and its corresponding peer move in tandem. A correlation of -1.0 means that prices move in opposite directions. A correlation of close to zero suggests that the price movements of assets are uncorrelated; in other words, the historical price movement of Arcos Dorados Holdings does not affect the price movement of the other competitor.
High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Arcos Stock performing well and Arcos Dorados Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Arcos Dorados' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| WEN | 1.89 | (0.09) | 0.00 | 1.91 | 0.00 | 4.07 | 11.11 | |||
| PZZA | 1.89 | (0.42) | 0.00 | 1.62 | 0.00 | 4.41 | 11.95 | |||
| BH | 2.42 | 0.13 | 0.02 | 0.59 | 4.10 | 5.21 | 21.12 | |||
| TILE | 1.09 | 0.33 | 0.22 | (1.86) | 1.02 | 2.87 | 8.15 | |||
| SBH | 1.98 | (0.02) | (0.01) | 0.02 | 2.76 | 4.28 | 11.38 | |||
| MBC | 1.93 | (0.11) | 0.00 | (0.03) | 0.00 | 5.50 | 15.86 | |||
| TRS | 1.25 | (0.06) | 0.00 | 0.23 | 0.00 | 2.27 | 6.74 | |||
| WINA | 1.56 | 0.16 | 0.06 | (0.96) | 1.85 | 3.40 | 9.64 | |||
| HDL | 1.54 | (0.12) | 0.00 | (4.70) | 0.00 | 3.55 | 9.69 |
Arcos Dorados Competitive Analysis
The better you understand Arcos Dorados competitors, the better chance you have of utilizing it as a position in your portfolios. From an individual investor's perspective, Arcos Dorados' competitive analysis can cover a whole range of metrics. Some of these will be more critical depending on who you are as an investor and how you react to market volatility. However, if you are locking your investment sandscape to a long-term horizon, comparing the fundamental indicator across Arcos Dorados' competition over several years is one of the best ways to analyze its investment potential.| Better Than Average | Worse Than Peers | View Performance Chart |
Arcos Dorados Competition Performance Charts
Five steps to successful analysis of Arcos Dorados Competition
Arcos Dorados' competitive analysis is the process of researching and evaluating its competitive landscape. It provides an understanding of the strengths, weaknesses, opportunities, and threats (SWOT) faced by Arcos Dorados Holdings in relation to its competition. Arcos Dorados' competition analysis typically involves several steps, including:- Identifying the key players in the market: This involves identifying the major competitors of Arcos Dorados in the market, both direct and indirect, as well as new entrants and disruptive technologies.
- Assessing the strengths and weaknesses of each competitor: This involves evaluating each competitor's strengths and weaknesses in areas such as product offerings, market share, brand recognition, financial performance, and distribution channels.
- Understanding the competitive environment: This involves evaluating the regulatory environment, economic conditions, and other factors that may impact Arcos Dorados' competitive landscape.
- Identifying opportunities and threats: This involves using the information gathered during the analysis to identify opportunities and threats to Arcos Dorados Holdings, and developing a strategy to address them.
- Evaluating the competitive landscape: This involves understanding the competitive dynamics of the market, such as pricing, marketing, and distribution strategies, as well as analyzing the competitive advantage of each competitor.
Complement your Arcos Dorados position
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Check out Arcos Dorados Correlation with its peers. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Will Hotels, Restaurants & Leisure sector continue expanding? Could Arcos diversify its offerings? Factors like these will boost the valuation of Arcos Dorados. If investors know Arcos will grow in the future, the company's valuation will be higher. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Arcos Dorados data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Understanding Arcos Dorados Holdings requires distinguishing between market price and book value, where the latter reflects Arcos's accounting equity. The concept of intrinsic value—what Arcos Dorados' is actually worth based on fundamentals—guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push Arcos Dorados' price substantially above or below its fundamental value.
Understanding that Arcos Dorados' value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Arcos Dorados represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. In contrast, Arcos Dorados' trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.