Correlation Between Flanigans Enterprises and WEBTOON Entertainment

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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

FlanigansWEBTOONDiversified AwayFlanigansWEBTOONDiversified Away100%
-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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy85.71%
ValuesDaily Returns

Flanigans Enterprises  vs.  WEBTOON Entertainment Common

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 051015202530
JavaScript chart by amCharts 3.21.15BDL WBTN
       Timeline  
Flanigans Enterprises 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Flanigans Enterprises are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Flanigans Enterprises is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2424.224.424.624.82525.225.4
WEBTOON Entertainment 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days WEBTOON Entertainment Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1011121314

Flanigans Enterprises and WEBTOON Entertainment Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.0-1.5-1.0-0.5-0.0250.440.941.441.94 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15BDL WBTN
       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.
The idea behind Flanigans Enterprises and WEBTOON Entertainment Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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.

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