Correlation Between Jollibee Foods and Good Times
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Good Times 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 Jollibee Foods and Good Times into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jollibee Foods Corp and Good Times Restaurants, you can compare the effects of market volatilities on Jollibee Foods and Good Times 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 Jollibee Foods with a short position of Good Times. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Good Times.
Diversification Opportunities for Jollibee Foods and Good Times
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jollibee and Good is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Good Times Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Good Times Restaurants and Jollibee Foods 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 Jollibee Foods Corp are associated (or correlated) with Good Times. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Good Times Restaurants has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Good Times go up and down completely randomly.
Pair Corralation between Jollibee Foods and Good Times
Assuming the 90 days horizon Jollibee Foods Corp is expected to under-perform the Good Times. In addition to that, Jollibee Foods is 1.4 times more volatile than Good Times Restaurants. It trades about -0.03 of its total potential returns per unit of risk. Good Times Restaurants is currently generating about 0.12 per unit of volatility. If you would invest 245.00 in Good Times Restaurants on October 20, 2024 and sell it today you would earn a total of 9.00 from holding Good Times Restaurants or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jollibee Foods Corp vs. Good Times Restaurants
Performance |
| Timeline |
| Jollibee Foods Corp |
| Good Times Restaurants |
Jollibee Foods and Good Times Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jollibee Foods and Good Times
The main advantage of trading using opposite Jollibee Foods and Good Times positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, Good Times 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 Good Times will offset losses from the drop in Good Times' long position.| Jollibee Foods vs. Nathans Famous | Jollibee Foods vs. Good Times Restaurants | Jollibee Foods vs. McDonalds Holdings | Jollibee Foods vs. Compass Group PLC |
| Good Times vs. Nathans Famous | Good Times vs. FAT Brands | Good Times vs. El Pollo Loco | Good Times vs. Ark Restaurants 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |