Correlation Between Nihon Kohden and First Watch
Can any of the company-specific risk be diversified away by investing in both Nihon Kohden 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 Nihon Kohden and First Watch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nihon Kohden and First Watch Restaurant, you can compare the effects of market volatilities on Nihon Kohden 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 Nihon Kohden with a short position of First Watch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nihon Kohden and First Watch.
Diversification Opportunities for Nihon Kohden and First Watch
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nihon and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nihon Kohden 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 Nihon Kohden 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 Nihon Kohden 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 Nihon Kohden i.e., Nihon Kohden and First Watch go up and down completely randomly.
Pair Corralation between Nihon Kohden and First Watch
If you would invest 1,721 in First Watch Restaurant on September 4, 2024 and sell it today you would earn a total of 165.00 from holding First Watch Restaurant or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Nihon Kohden vs. First Watch Restaurant
Performance |
| Timeline |
| Nihon Kohden |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First Watch Restaurant |
Nihon Kohden and First Watch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nihon Kohden and First Watch
The main advantage of trading using opposite Nihon Kohden and First Watch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nihon Kohden 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.| Nihon Kohden vs. The Coca Cola | Nihon Kohden vs. Sealed Air | Nihon Kohden vs. Mativ Holdings | Nihon Kohden vs. Ecovyst |
| First Watch vs. Hyatt Hotels | First Watch vs. Smart Share Global | First Watch vs. Sweetgreen | First Watch vs. Wyndham Hotels Resorts |
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
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |