Correlation Between El Pollo and KVH Industries
Can any of the company-specific risk be diversified away by investing in both El Pollo and KVH Industries 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 El Pollo and KVH Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between El Pollo Loco and KVH Industries, you can compare the effects of market volatilities on El Pollo and KVH Industries 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 El Pollo with a short position of KVH Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Pollo and KVH Industries.
Diversification Opportunities for El Pollo and KVH Industries
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LOCO and KVH is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding El Pollo Loco and KVH Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KVH Industries and El Pollo 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 El Pollo Loco are associated (or correlated) with KVH Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KVH Industries has no effect on the direction of El Pollo i.e., El Pollo and KVH Industries go up and down completely randomly.
Pair Corralation between El Pollo and KVH Industries
Given the investment horizon of 90 days El Pollo Loco is expected to generate 0.76 times more return on investment than KVH Industries. However, El Pollo Loco is 1.32 times less risky than KVH Industries. It trades about 0.02 of its potential returns per unit of risk. KVH Industries is currently generating about -0.03 per unit of risk. If you would invest 1,103 in El Pollo Loco on September 3, 2024 and sell it today you would earn a total of 169.00 from holding El Pollo Loco or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Pollo Loco vs. KVH Industries
Performance |
| Timeline |
| El Pollo Loco |
| KVH Industries |
El Pollo and KVH Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Pollo and KVH Industries
The main advantage of trading using opposite El Pollo and KVH Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Pollo position performs unexpectedly, KVH Industries 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 KVH Industries will offset losses from the drop in KVH Industries' long position.| El Pollo vs. FAT Brands | El Pollo vs. Potbelly Co | El Pollo vs. BJs Restaurants | El Pollo vs. One Group Hospitality |
| KVH Industries vs. Telesat Corp | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Knowles Cor | KVH Industries vs. Ituran Location and |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |