Correlation Between BurgerFi International and ZA
Can any of the company-specific risk be diversified away by investing in both BurgerFi International and ZA 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 BurgerFi International and ZA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BurgerFi International LLC and ZA Group, you can compare the effects of market volatilities on BurgerFi International and ZA 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 BurgerFi International with a short position of ZA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BurgerFi International and ZA.
Diversification Opportunities for BurgerFi International and ZA
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between BurgerFi and ZA is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding BurgerFi International LLC and ZA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZA Group and BurgerFi International 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 BurgerFi International LLC are associated (or correlated) with ZA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZA Group has no effect on the direction of BurgerFi International i.e., BurgerFi International and ZA go up and down completely randomly.
Pair Corralation between BurgerFi International and ZA
Assuming the 90 days horizon BurgerFi International is expected to generate 15.81 times less return on investment than ZA. But when comparing it to its historical volatility, BurgerFi International LLC is 7.95 times less risky than ZA. It trades about 0.1 of its potential returns per unit of risk. ZA Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 0.01 in ZA Group on August 31, 2024 and sell it today you would earn a total of 0.00 from holding ZA Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
BurgerFi International LLC vs. ZA Group
Performance |
| Timeline |
| BurgerFi International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| ZA Group |
BurgerFi International and ZA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BurgerFi International and ZA
The main advantage of trading using opposite BurgerFi International and ZA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BurgerFi International position performs unexpectedly, ZA 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 ZA will offset losses from the drop in ZA's long position.| BurgerFi International vs. Canoo Holdings | BurgerFi International vs. Landsea Homes | BurgerFi International vs. Nuvve Holding Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |