Correlation Between Mitsui OSK and Texas Roadhouse
Can any of the company-specific risk be diversified away by investing in both Mitsui OSK and Texas Roadhouse 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 Mitsui OSK and Texas Roadhouse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsui OSK Lines and Texas Roadhouse, you can compare the effects of market volatilities on Mitsui OSK and Texas Roadhouse 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 Mitsui OSK with a short position of Texas Roadhouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsui OSK and Texas Roadhouse.
Diversification Opportunities for Mitsui OSK and Texas Roadhouse
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitsui and Texas is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mitsui OSK Lines and Texas Roadhouse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Texas Roadhouse and Mitsui OSK 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 Mitsui OSK Lines are associated (or correlated) with Texas Roadhouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Texas Roadhouse has no effect on the direction of Mitsui OSK i.e., Mitsui OSK and Texas Roadhouse go up and down completely randomly.
Pair Corralation between Mitsui OSK and Texas Roadhouse
Assuming the 90 days trading horizon Mitsui OSK is expected to generate 1.67 times less return on investment than Texas Roadhouse. In addition to that, Mitsui OSK is 1.59 times more volatile than Texas Roadhouse. It trades about 0.04 of its total potential returns per unit of risk. Texas Roadhouse is currently generating about 0.1 per unit of volatility. If you would invest 8,956 in Texas Roadhouse on September 3, 2024 and sell it today you would earn a total of 10,264 from holding Texas Roadhouse or generate 114.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsui OSK Lines vs. Texas Roadhouse
Performance |
| Timeline |
| Mitsui OSK Lines |
| Texas Roadhouse |
Mitsui OSK and Texas Roadhouse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsui OSK and Texas Roadhouse
The main advantage of trading using opposite Mitsui OSK and Texas Roadhouse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsui OSK position performs unexpectedly, Texas Roadhouse 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 Texas Roadhouse will offset losses from the drop in Texas Roadhouse's long position.| Mitsui OSK vs. NTG Nordic Transport | Mitsui OSK vs. Lion One Metals | Mitsui OSK vs. Texas Roadhouse | Mitsui OSK vs. SERI INDUSTRIAL EO |
| Texas Roadhouse vs. Virtus Investment Partners | Texas Roadhouse vs. Strategic Investments AS | Texas Roadhouse vs. MAGNUM MINING EXP | Texas Roadhouse vs. GOODYEAR T RUBBER |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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