Correlation Between Flanigans Enterprises and Potbelly
Can any of the company-specific risk be diversified away by investing in both Flanigans Enterprises and Potbelly 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 Potbelly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flanigans Enterprises and Potbelly Co, you can compare the effects of market volatilities on Flanigans Enterprises and Potbelly 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 Potbelly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flanigans Enterprises and Potbelly.
Diversification Opportunities for Flanigans Enterprises and Potbelly
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flanigans and Potbelly is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Flanigans Enterprises and Potbelly Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Potbelly 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 Potbelly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Potbelly has no effect on the direction of Flanigans Enterprises i.e., Flanigans Enterprises and Potbelly go up and down completely randomly.
Pair Corralation between Flanigans Enterprises and Potbelly
Considering the 90-day investment horizon Flanigans Enterprises is expected to generate 15.7 times more return on investment than Potbelly. However, Flanigans Enterprises is 15.7 times more volatile than Potbelly Co. It trades about 0.04 of its potential returns per unit of risk. Potbelly Co is currently generating about 0.05 per unit of risk. If you would invest 2,894 in Flanigans Enterprises on August 24, 2024 and sell it today you would lose (410.00) from holding Flanigans Enterprises or give up 14.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.77% |
| Values | Daily Returns |
Flanigans Enterprises vs. Potbelly Co
Performance |
| Timeline |
| Flanigans Enterprises |
| Potbelly |
Flanigans Enterprises and Potbelly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flanigans Enterprises and Potbelly
The main advantage of trading using opposite Flanigans Enterprises and Potbelly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flanigans Enterprises position performs unexpectedly, Potbelly 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 Potbelly will offset losses from the drop in Potbelly's long position.| Flanigans Enterprises vs. FAT Brands | Flanigans Enterprises vs. Potbelly Co | Flanigans Enterprises vs. BJs Restaurants | Flanigans Enterprises vs. One Group Hospitality |
| Potbelly vs. FAT Brands | Potbelly vs. BJs Restaurants | Potbelly vs. One Group Hospitality | Potbelly vs. El Pollo Loco |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |