Correlation Between Nathans Famous and Fiesta Restaurant
Can any of the company-specific risk be diversified away by investing in both Nathans Famous and Fiesta Restaurant 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 Nathans Famous and Fiesta Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nathans Famous and Fiesta Restaurant Group, you can compare the effects of market volatilities on Nathans Famous and Fiesta Restaurant 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 Nathans Famous with a short position of Fiesta Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nathans Famous and Fiesta Restaurant.
Diversification Opportunities for Nathans Famous and Fiesta Restaurant
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nathans and Fiesta is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nathans Famous and Fiesta Restaurant Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiesta Restaurant and Nathans Famous 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 Nathans Famous are associated (or correlated) with Fiesta Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiesta Restaurant has no effect on the direction of Nathans Famous i.e., Nathans Famous and Fiesta Restaurant go up and down completely randomly.
Pair Corralation between Nathans Famous and Fiesta Restaurant
If you would invest 6,794 in Nathans Famous on August 24, 2024 and sell it today you would earn a total of 1,637 from holding Nathans Famous or generate 24.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Nathans Famous vs. Fiesta Restaurant Group
Performance |
| Timeline |
| Nathans Famous |
| Fiesta Restaurant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nathans Famous and Fiesta Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nathans Famous and Fiesta Restaurant
The main advantage of trading using opposite Nathans Famous and Fiesta Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nathans Famous position performs unexpectedly, Fiesta Restaurant 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 Fiesta Restaurant will offset losses from the drop in Fiesta Restaurant's long position.| Nathans Famous vs. Bloomin Brands | Nathans Famous vs. BJs Restaurants | Nathans Famous vs. Darden Restaurants | Nathans Famous vs. Wingstop |
| Fiesta Restaurant vs. BJs Restaurants | Fiesta Restaurant vs. Dine Brands Global | Fiesta Restaurant vs. Brinker International | Fiesta Restaurant 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |