Correlation Between Jack In and Pinstripes Holdings
Can any of the company-specific risk be diversified away by investing in both Jack In and Pinstripes Holdings 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 Jack In and Pinstripes Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack In The and Pinstripes Holdings, you can compare the effects of market volatilities on Jack In and Pinstripes Holdings 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 Jack In with a short position of Pinstripes Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack In and Pinstripes Holdings.
Diversification Opportunities for Jack In and Pinstripes Holdings
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jack and Pinstripes is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jack In The and Pinstripes Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinstripes Holdings and Jack In 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 Jack In The are associated (or correlated) with Pinstripes Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinstripes Holdings has no effect on the direction of Jack In i.e., Jack In and Pinstripes Holdings go up and down completely randomly.
Pair Corralation between Jack In and Pinstripes Holdings
Given the investment horizon of 90 days Jack In The is expected to generate 0.35 times more return on investment than Pinstripes Holdings. However, Jack In The is 2.85 times less risky than Pinstripes Holdings. It trades about -0.1 of its potential returns per unit of risk. Pinstripes Holdings is currently generating about -0.14 per unit of risk. If you would invest 5,731 in Jack In The on October 26, 2024 and sell it today you would lose (1,810) from holding Jack In The or give up 31.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jack In The vs. Pinstripes Holdings
Performance |
| Timeline |
| Jack In |
| Pinstripes Holdings |
Jack In and Pinstripes Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jack In and Pinstripes Holdings
The main advantage of trading using opposite Jack In and Pinstripes Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack In position performs unexpectedly, Pinstripes Holdings 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 Pinstripes Holdings will offset losses from the drop in Pinstripes Holdings' long position.| Jack In vs. Dine Brands Global | Jack In vs. Bloomin Brands | Jack In vs. BJs Restaurants | Jack In vs. The Cheesecake Factory |
| Pinstripes Holdings vs. Summit Hotel Properties | Pinstripes Holdings vs. Starbucks | Pinstripes Holdings vs. CECO Environmental Corp | Pinstripes Holdings vs. BJs Restaurants |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |