Correlation Between Pinstripes Holdings and Bt Brands
Can any of the company-specific risk be diversified away by investing in both Pinstripes Holdings and Bt Brands 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 Pinstripes Holdings and Bt Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinstripes Holdings and Bt Brands, you can compare the effects of market volatilities on Pinstripes Holdings and Bt Brands 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 Pinstripes Holdings with a short position of Bt Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinstripes Holdings and Bt Brands.
Diversification Opportunities for Pinstripes Holdings and Bt Brands
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pinstripes and BTBD is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Pinstripes Holdings and Bt Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bt Brands and Pinstripes Holdings 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 Pinstripes Holdings are associated (or correlated) with Bt Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bt Brands has no effect on the direction of Pinstripes Holdings i.e., Pinstripes Holdings and Bt Brands go up and down completely randomly.
Pair Corralation between Pinstripes Holdings and Bt Brands
Given the investment horizon of 90 days Pinstripes Holdings is expected to generate 2.31 times more return on investment than Bt Brands. However, Pinstripes Holdings is 2.31 times more volatile than Bt Brands. It trades about 0.14 of its potential returns per unit of risk. Bt Brands is currently generating about -0.07 per unit of risk. If you would invest 71.00 in Pinstripes Holdings on August 23, 2024 and sell it today you would earn a total of 17.00 from holding Pinstripes Holdings or generate 23.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinstripes Holdings vs. Bt Brands
Performance |
| Timeline |
| Pinstripes Holdings |
| Bt Brands |
Pinstripes Holdings and Bt Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinstripes Holdings and Bt Brands
The main advantage of trading using opposite Pinstripes Holdings and Bt Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinstripes Holdings position performs unexpectedly, Bt Brands 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 Bt Brands will offset losses from the drop in Bt Brands' long position.| Pinstripes Holdings vs. Bloomin Brands | Pinstripes Holdings vs. BJs Restaurants | Pinstripes Holdings vs. Darden Restaurants | Pinstripes Holdings vs. Wingstop |
| Bt Brands vs. Bloomin Brands | Bt Brands vs. BJs Restaurants | Bt Brands vs. Darden Restaurants | Bt Brands vs. Wingstop |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |