Correlation Between Mountain Crest and First Watch
Can any of the company-specific risk be diversified away by investing in both Mountain Crest and First Watch 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 Mountain Crest and First Watch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mountain Crest Acquisition and First Watch Restaurant, you can compare the effects of market volatilities on Mountain Crest and First Watch 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 Mountain Crest with a short position of First Watch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mountain Crest and First Watch.
Diversification Opportunities for Mountain Crest and First Watch
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mountain and First is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mountain Crest Acquisition and First Watch Restaurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Watch Restaurant and Mountain Crest 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 Mountain Crest Acquisition are associated (or correlated) with First Watch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Watch Restaurant has no effect on the direction of Mountain Crest i.e., Mountain Crest and First Watch go up and down completely randomly.
Pair Corralation between Mountain Crest and First Watch
If you would invest (100.00) in Mountain Crest Acquisition on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Mountain Crest Acquisition or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mountain Crest Acquisition vs. First Watch Restaurant
Performance |
| Timeline |
| Mountain Crest Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First Watch Restaurant |
Mountain Crest and First Watch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mountain Crest and First Watch
The main advantage of trading using opposite Mountain Crest and First Watch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mountain Crest position performs unexpectedly, First Watch 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 First Watch will offset losses from the drop in First Watch's long position.| Mountain Crest vs. Artisan Partners Asset | Mountain Crest vs. Discover Financial Services | Mountain Crest vs. Mill City Ventures | Mountain Crest vs. United Homes Group |
| First Watch vs. Noble Romans | First Watch vs. Good Times Restaurants | First Watch vs. Flanigans Enterprises | First Watch vs. FAT Brands |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |