Correlation Between First Watch and 191216CT5
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By analyzing existing cross correlation between First Watch Restaurant and COCA COLA CO, you can compare the effects of market volatilities on First Watch and 191216CT5 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 191216CT5. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Watch and 191216CT5.
Diversification Opportunities for First Watch and 191216CT5
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and 191216CT5 is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding First Watch Restaurant and COCA COLA CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A CO 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 191216CT5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A CO has no effect on the direction of First Watch i.e., First Watch and 191216CT5 go up and down completely randomly.
Pair Corralation between First Watch and 191216CT5
Given the investment horizon of 90 days First Watch Restaurant is expected to generate 11.06 times more return on investment than 191216CT5. However, First Watch is 11.06 times more volatile than COCA COLA CO. It trades about 0.14 of its potential returns per unit of risk. COCA COLA CO is currently generating about 0.15 per unit of risk. If you would invest 1,721 in First Watch Restaurant on September 3, 2024 and sell it today you would earn a total of 188.00 from holding First Watch Restaurant or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
First Watch Restaurant vs. COCA COLA CO
Performance |
| Timeline |
| First Watch Restaurant |
| COCA A CO |
First Watch and 191216CT5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Watch and 191216CT5
The main advantage of trading using opposite First Watch and 191216CT5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Watch position performs unexpectedly, 191216CT5 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 191216CT5 will offset losses from the drop in 191216CT5's long position.| First Watch vs. Starbucks | First Watch vs. Highway Holdings Limited | First Watch vs. QCR Holdings | First Watch vs. Partner Communications |
| 191216CT5 vs. United Guardian | 191216CT5 vs. Amgen Inc | 191216CT5 vs. Proficient Auto Logistics, | 191216CT5 vs. Akanda 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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