Correlation Between Pinstripes Holdings and Restaurant Brands
Can any of the company-specific risk be diversified away by investing in both Pinstripes Holdings and Restaurant 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 Restaurant 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 Restaurant Brands International, you can compare the effects of market volatilities on Pinstripes Holdings and Restaurant 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 Restaurant Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinstripes Holdings and Restaurant Brands.
Diversification Opportunities for Pinstripes Holdings and Restaurant Brands
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pinstripes and Restaurant is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Pinstripes Holdings and Restaurant Brands Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Restaurant 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 Restaurant Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Restaurant Brands has no effect on the direction of Pinstripes Holdings i.e., Pinstripes Holdings and Restaurant Brands go up and down completely randomly.
Pair Corralation between Pinstripes Holdings and Restaurant Brands
Given the investment horizon of 90 days Pinstripes Holdings is expected to under-perform the Restaurant Brands. In addition to that, Pinstripes Holdings is 4.68 times more volatile than Restaurant Brands International. It trades about -0.08 of its total potential returns per unit of risk. Restaurant Brands International is currently generating about -0.03 per unit of volatility. If you would invest 7,582 in Restaurant Brands International on August 27, 2024 and sell it today you would lose (672.00) from holding Restaurant Brands International or give up 8.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinstripes Holdings vs. Restaurant Brands Internationa
Performance |
| Timeline |
| Pinstripes Holdings |
| Restaurant Brands |
Pinstripes Holdings and Restaurant Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinstripes Holdings and Restaurant Brands
The main advantage of trading using opposite Pinstripes Holdings and Restaurant Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinstripes Holdings position performs unexpectedly, Restaurant 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 Restaurant Brands will offset losses from the drop in Restaurant Brands' long position.| Pinstripes Holdings vs. Grupo Televisa SAB | Pinstripes Holdings vs. Ziff Davis | Pinstripes Holdings vs. NETGEAR | Pinstripes Holdings vs. Radcom |
| Restaurant Brands vs. Yum Brands | Restaurant Brands vs. Papa Johns International | Restaurant Brands vs. Jack In The | Restaurant Brands vs. Dominos Pizza |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |