Correlation Between Flanigans Enterprises and WEBTOON Entertainment
Can any of the company-specific risk be diversified away by investing in both Flanigans Enterprises and WEBTOON Entertainment 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 WEBTOON Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flanigans Enterprises and WEBTOON Entertainment Common, you can compare the effects of market volatilities on Flanigans Enterprises and WEBTOON Entertainment 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 WEBTOON Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flanigans Enterprises and WEBTOON Entertainment.
Diversification Opportunities for Flanigans Enterprises and WEBTOON Entertainment
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flanigans and WEBTOON is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Flanigans Enterprises and WEBTOON Entertainment Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEBTOON Entertainment 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 WEBTOON Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEBTOON Entertainment has no effect on the direction of Flanigans Enterprises i.e., Flanigans Enterprises and WEBTOON Entertainment go up and down completely randomly.
Pair Corralation between Flanigans Enterprises and WEBTOON Entertainment
Considering the 90-day investment horizon Flanigans Enterprises is expected to generate 0.24 times more return on investment than WEBTOON Entertainment. However, Flanigans Enterprises is 4.18 times less risky than WEBTOON Entertainment. It trades about -0.04 of its potential returns per unit of risk. WEBTOON Entertainment Common is currently generating about -0.21 per unit of risk. If you would invest 2,537 in Flanigans Enterprises on November 27, 2024 and sell it today you would lose (24.00) from holding Flanigans Enterprises or give up 0.95% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 85.71% |
Values | Daily Returns |
Flanigans Enterprises vs. WEBTOON Entertainment Common
Performance |
Timeline |
Flanigans Enterprises |
WEBTOON Entertainment |
Flanigans Enterprises and WEBTOON Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Flanigans Enterprises and WEBTOON Entertainment
The main advantage of trading using opposite Flanigans Enterprises and WEBTOON Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flanigans Enterprises position performs unexpectedly, WEBTOON Entertainment 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 WEBTOON Entertainment will offset losses from the drop in WEBTOON Entertainment's long position.Flanigans Enterprises vs. FAT Brands | ||
Flanigans Enterprises vs. Potbelly Co | ||
Flanigans Enterprises vs. BJs Restaurants | ||
Flanigans Enterprises vs. One Group Hospitality |
WEBTOON Entertainment vs. FTAI Aviation Ltd | ||
WEBTOON Entertainment vs. Planet Fitness | ||
WEBTOON Entertainment vs. Mitsubishi UFJ Lease | ||
WEBTOON Entertainment vs. Lendlease Global Commercial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |