Correlation Between Autogrill SpA and Flanigans Enterprises
Can any of the company-specific risk be diversified away by investing in both Autogrill SpA and Flanigans Enterprises 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 Autogrill SpA and Flanigans Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autogrill SpA ADR and Flanigans Enterprises, you can compare the effects of market volatilities on Autogrill SpA and Flanigans Enterprises 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 Autogrill SpA with a short position of Flanigans Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autogrill SpA and Flanigans Enterprises.
Diversification Opportunities for Autogrill SpA and Flanigans Enterprises
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autogrill and Flanigans is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Autogrill SpA ADR and Flanigans Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flanigans Enterprises and Autogrill SpA 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 Autogrill SpA ADR are associated (or correlated) with Flanigans Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flanigans Enterprises has no effect on the direction of Autogrill SpA i.e., Autogrill SpA and Flanigans Enterprises go up and down completely randomly.
Pair Corralation between Autogrill SpA and Flanigans Enterprises
If you would invest 825.00 in Autogrill SpA ADR on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Autogrill SpA ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Autogrill SpA ADR vs. Flanigans Enterprises
Performance |
| Timeline |
| Autogrill SpA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Flanigans Enterprises |
Autogrill SpA and Flanigans Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autogrill SpA and Flanigans Enterprises
The main advantage of trading using opposite Autogrill SpA and Flanigans Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autogrill SpA position performs unexpectedly, Flanigans Enterprises 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 Flanigans Enterprises will offset losses from the drop in Flanigans Enterprises' long position.| Autogrill SpA vs. Marstons PLC | Autogrill SpA vs. Marstons PLC | Autogrill SpA vs. Bagger Daves Burger | Autogrill SpA vs. Alsea SAB de |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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