Correlation Between New Momentum and Chuys Holdings
Can any of the company-specific risk be diversified away by investing in both New Momentum and Chuys Holdings 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 New Momentum and Chuys Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Momentum and Chuys Holdings, you can compare the effects of market volatilities on New Momentum and Chuys Holdings 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 New Momentum with a short position of Chuys Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Momentum and Chuys Holdings.
Diversification Opportunities for New Momentum and Chuys Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Chuys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Momentum and Chuys Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuys Holdings and New Momentum 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 New Momentum are associated (or correlated) with Chuys Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuys Holdings has no effect on the direction of New Momentum i.e., New Momentum and Chuys Holdings go up and down completely randomly.
Pair Corralation between New Momentum and Chuys Holdings
If you would invest 0.04 in New Momentum on November 18, 2024 and sell it today you would earn a total of 0.01 from holding New Momentum or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
New Momentum vs. Chuys Holdings
Performance |
| Timeline |
| New Momentum |
| Chuys Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
New Momentum and Chuys Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Momentum and Chuys Holdings
The main advantage of trading using opposite New Momentum and Chuys Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Momentum position performs unexpectedly, Chuys Holdings 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 Chuys Holdings will offset losses from the drop in Chuys Holdings' long position.| New Momentum vs. Booking Holdings | New Momentum vs. TripAdvisor | New Momentum vs. Airbnb Inc | New Momentum vs. Royal Caribbean Cruises |
| Chuys Holdings vs. Brinker International | Chuys Holdings vs. Bloomin Brands | Chuys Holdings vs. FAT Brands | Chuys Holdings vs. Potbelly Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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