Correlation Between Chuys Holdings and Noodles
Can any of the company-specific risk be diversified away by investing in both Chuys Holdings and Noodles 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 Chuys Holdings and Noodles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuys Holdings and Noodles Company, you can compare the effects of market volatilities on Chuys Holdings and Noodles 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 Chuys Holdings with a short position of Noodles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuys Holdings and Noodles.
Diversification Opportunities for Chuys Holdings and Noodles
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chuys and Noodles is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chuys Holdings and Noodles Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noodles Company and Chuys Holdings 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 Chuys Holdings are associated (or correlated) with Noodles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noodles Company has no effect on the direction of Chuys Holdings i.e., Chuys Holdings and Noodles go up and down completely randomly.
Pair Corralation between Chuys Holdings and Noodles
If you would invest 64.00 in Noodles Company on November 9, 2024 and sell it today you would earn a total of 89.00 from holding Noodles Company or generate 139.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Chuys Holdings vs. Noodles Company
Performance |
| Timeline |
| Chuys Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Noodles Company |
Chuys Holdings and Noodles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuys Holdings and Noodles
The main advantage of trading using opposite Chuys Holdings and Noodles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuys Holdings position performs unexpectedly, Noodles 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 Noodles will offset losses from the drop in Noodles' long position.| Chuys Holdings vs. Brinker International | Chuys Holdings vs. Bloomin Brands | Chuys Holdings vs. FAT Brands | Chuys Holdings vs. Potbelly Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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