Correlation Between Cheetah Net and Wingstop
Can any of the company-specific risk be diversified away by investing in both Cheetah Net and Wingstop 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 Cheetah Net and Wingstop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheetah Net Supply and Wingstop, you can compare the effects of market volatilities on Cheetah Net and Wingstop 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 Cheetah Net with a short position of Wingstop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Net and Wingstop.
Diversification Opportunities for Cheetah Net and Wingstop
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cheetah and Wingstop is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cheetah Net Supply and Wingstop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wingstop and Cheetah Net 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 Cheetah Net Supply are associated (or correlated) with Wingstop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wingstop has no effect on the direction of Cheetah Net i.e., Cheetah Net and Wingstop go up and down completely randomly.
Pair Corralation between Cheetah Net and Wingstop
Given the investment horizon of 90 days Cheetah Net Supply is expected to under-perform the Wingstop. But the stock apears to be less risky and, when comparing its historical volatility, Cheetah Net Supply is 1.3 times less risky than Wingstop. The stock trades about -0.39 of its potential returns per unit of risk. The Wingstop is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 29,582 in Wingstop on November 29, 2024 and sell it today you would lose (5,696) from holding Wingstop or give up 19.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheetah Net Supply vs. Wingstop
Performance |
| Timeline |
| Cheetah Net Supply |
| Wingstop |
Cheetah Net and Wingstop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheetah Net and Wingstop
The main advantage of trading using opposite Cheetah Net and Wingstop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheetah Net position performs unexpectedly, Wingstop 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 Wingstop will offset losses from the drop in Wingstop's long position.| Cheetah Net vs. Invitation Homes | Cheetah Net vs. Eddy Smart Home | Cheetah Net vs. Sun Country Airlines | Cheetah Net vs. Singapore Airlines |
| Wingstop vs. Papa Johns International | Wingstop vs. Chipotle Mexican Grill | Wingstop vs. The Wendys Co | Wingstop vs. Dominos Pizza Common |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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