Correlation Between First Watch and 049560AY1
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By analyzing existing cross correlation between First Watch Restaurant and ATO 575 15 OCT 52, you can compare the effects of market volatilities on First Watch and 049560AY1 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 First Watch with a short position of 049560AY1. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Watch and 049560AY1.
Diversification Opportunities for First Watch and 049560AY1
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and 049560AY1 is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding First Watch Restaurant and ATO 575 15 OCT 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATO 575 15 and First Watch 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 First Watch Restaurant are associated (or correlated) with 049560AY1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATO 575 15 has no effect on the direction of First Watch i.e., First Watch and 049560AY1 go up and down completely randomly.
Pair Corralation between First Watch and 049560AY1
Given the investment horizon of 90 days First Watch Restaurant is expected to generate 5.51 times more return on investment than 049560AY1. However, First Watch is 5.51 times more volatile than ATO 575 15 OCT 52. It trades about 0.11 of its potential returns per unit of risk. ATO 575 15 OCT 52 is currently generating about 0.21 per unit of risk. If you would invest 1,721 in First Watch Restaurant on September 5, 2024 and sell it today you would earn a total of 143.00 from holding First Watch Restaurant or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.91% |
| Values | Daily Returns |
First Watch Restaurant vs. ATO 575 15 OCT 52
Performance |
| Timeline |
| First Watch Restaurant |
| ATO 575 15 |
First Watch and 049560AY1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Watch and 049560AY1
The main advantage of trading using opposite First Watch and 049560AY1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Watch position performs unexpectedly, 049560AY1 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 049560AY1 will offset losses from the drop in 049560AY1's long position.| First Watch vs. Hyatt Hotels | First Watch vs. Smart Share Global | First Watch vs. Wyndham Hotels Resorts | First Watch vs. WW International |
| 049560AY1 vs. First Watch Restaurant | 049560AY1 vs. Diamond Estates Wines | 049560AY1 vs. Diageo PLC ADR | 049560AY1 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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