Correlation Between Chuys Holdings and One Group
Can any of the company-specific risk be diversified away by investing in both Chuys Holdings and One Group 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 One Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuys Holdings and One Group Hospitality, you can compare the effects of market volatilities on Chuys Holdings and One Group 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 One Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuys Holdings and One Group.
Diversification Opportunities for Chuys Holdings and One Group
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chuys and One is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Chuys Holdings and One Group Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Group Hospitality 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 One Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Group Hospitality has no effect on the direction of Chuys Holdings i.e., Chuys Holdings and One Group go up and down completely randomly.
Pair Corralation between Chuys Holdings and One Group
If you would invest 297.00 in One Group Hospitality on November 5, 2024 and sell it today you would earn a total of 78.00 from holding One Group Hospitality or generate 26.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Chuys Holdings vs. One Group Hospitality
Performance |
| Timeline |
| Chuys Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| One Group Hospitality |
Chuys Holdings and One Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuys Holdings and One Group
The main advantage of trading using opposite Chuys Holdings and One Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuys Holdings position performs unexpectedly, One Group 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 One Group will offset losses from the drop in One Group's long position.| Chuys Holdings vs. Brinker International | Chuys Holdings vs. Bloomin Brands | Chuys Holdings vs. FAT Brands | Chuys Holdings vs. Potbelly Co |
| One Group vs. Chipotle Mexican Grill | One Group vs. Dominos Pizza Common | One Group vs. Yum Brands | One Group vs. The Wendys 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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