Correlation Between Flanigans Enterprises and Bagger Daves
Can any of the company-specific risk be diversified away by investing in both Flanigans Enterprises and Bagger Daves 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 Flanigans Enterprises and Bagger Daves into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flanigans Enterprises and Bagger Daves Burger, you can compare the effects of market volatilities on Flanigans Enterprises and Bagger Daves 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 Flanigans Enterprises with a short position of Bagger Daves. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flanigans Enterprises and Bagger Daves.
Diversification Opportunities for Flanigans Enterprises and Bagger Daves
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flanigans and Bagger is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Flanigans Enterprises and Bagger Daves Burger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bagger Daves Burger and Flanigans Enterprises 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 Flanigans Enterprises are associated (or correlated) with Bagger Daves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bagger Daves Burger has no effect on the direction of Flanigans Enterprises i.e., Flanigans Enterprises and Bagger Daves go up and down completely randomly.
Pair Corralation between Flanigans Enterprises and Bagger Daves
Considering the 90-day investment horizon Flanigans Enterprises is expected to generate 0.19 times more return on investment than Bagger Daves. However, Flanigans Enterprises is 5.23 times less risky than Bagger Daves. It trades about -0.17 of its potential returns per unit of risk. Bagger Daves Burger is currently generating about -0.07 per unit of risk. If you would invest 2,576 in Flanigans Enterprises on August 28, 2024 and sell it today you would lose (82.00) from holding Flanigans Enterprises or give up 3.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Flanigans Enterprises vs. Bagger Daves Burger
Performance |
| Timeline |
| Flanigans Enterprises |
| Bagger Daves Burger |
Flanigans Enterprises and Bagger Daves Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flanigans Enterprises and Bagger Daves
The main advantage of trading using opposite Flanigans Enterprises and Bagger Daves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flanigans Enterprises position performs unexpectedly, Bagger Daves 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 Bagger Daves will offset losses from the drop in Bagger Daves' long position.| Flanigans Enterprises vs. FAT Brands | Flanigans Enterprises vs. Potbelly Co | Flanigans Enterprises vs. BJs Restaurants | Flanigans Enterprises vs. One Group Hospitality |
| Bagger Daves vs. Alsea SAB de | Bagger Daves vs. Marstons PLC | Bagger Daves vs. Marstons PLC | Bagger Daves vs. Spot Coffee |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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