Correlation Between Flanigans Enterprises and Acushnet Holdings
Can any of the company-specific risk be diversified away by investing in both Flanigans Enterprises and Acushnet Holdings 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 Acushnet Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flanigans Enterprises and Acushnet Holdings Corp, you can compare the effects of market volatilities on Flanigans Enterprises and Acushnet Holdings 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 Acushnet Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flanigans Enterprises and Acushnet Holdings.
Diversification Opportunities for Flanigans Enterprises and Acushnet Holdings
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flanigans and Acushnet is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Flanigans Enterprises and Acushnet Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acushnet Holdings Corp 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 Acushnet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acushnet Holdings Corp has no effect on the direction of Flanigans Enterprises i.e., Flanigans Enterprises and Acushnet Holdings go up and down completely randomly.
Pair Corralation between Flanigans Enterprises and Acushnet Holdings
Considering the 90-day investment horizon Flanigans Enterprises is expected to generate 0.54 times more return on investment than Acushnet Holdings. However, Flanigans Enterprises is 1.85 times less risky than Acushnet Holdings. It trades about 0.13 of its potential returns per unit of risk. Acushnet Holdings Corp is currently generating about -0.16 per unit of risk. If you would invest 2,460 in Flanigans Enterprises on November 2, 2024 and sell it today you would earn a total of 78.00 from holding Flanigans Enterprises or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flanigans Enterprises vs. Acushnet Holdings Corp
Performance |
| Timeline |
| Flanigans Enterprises |
| Acushnet Holdings Corp |
Flanigans Enterprises and Acushnet Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flanigans Enterprises and Acushnet Holdings
The main advantage of trading using opposite Flanigans Enterprises and Acushnet Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flanigans Enterprises position performs unexpectedly, Acushnet Holdings 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 Acushnet Holdings will offset losses from the drop in Acushnet Holdings' long position.| Flanigans Enterprises vs. Papa Johns International | Flanigans Enterprises vs. Darden Restaurants | Flanigans Enterprises vs. Yum China Holdings |
| Acushnet Holdings vs. YETI Holdings | Acushnet Holdings vs. Madison Square Garden | Acushnet Holdings vs. Six Flags Entertainment | Acushnet Holdings vs. Johnson Outdoors |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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