Correlation Between Papa Johns and Sonder Holdings
Can any of the company-specific risk be diversified away by investing in both Papa Johns and Sonder 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 Papa Johns and Sonder Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Papa Johns International and Sonder Holdings, you can compare the effects of market volatilities on Papa Johns and Sonder 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 Papa Johns with a short position of Sonder Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Papa Johns and Sonder Holdings.
Diversification Opportunities for Papa Johns and Sonder Holdings
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Papa and Sonder is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Papa Johns International and Sonder Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonder Holdings and Papa Johns 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 Papa Johns International are associated (or correlated) with Sonder Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonder Holdings has no effect on the direction of Papa Johns i.e., Papa Johns and Sonder Holdings go up and down completely randomly.
Pair Corralation between Papa Johns and Sonder Holdings
Given the investment horizon of 90 days Papa Johns International is expected to under-perform the Sonder Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Papa Johns International is 5.16 times less risky than Sonder Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Sonder Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,740 in Sonder Holdings on September 3, 2024 and sell it today you would lose (2,360) from holding Sonder Holdings or give up 86.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Papa Johns International vs. Sonder Holdings
Performance |
| Timeline |
| Papa Johns International |
| Sonder Holdings |
Papa Johns and Sonder Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Papa Johns and Sonder Holdings
The main advantage of trading using opposite Papa Johns and Sonder Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Papa Johns position performs unexpectedly, Sonder 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 Sonder Holdings will offset losses from the drop in Sonder Holdings' long position.| Papa Johns vs. Highway Holdings Limited | Papa Johns vs. QCR Holdings | Papa Johns vs. Partner Communications | Papa Johns vs. Acumen Pharmaceuticals |
| Sonder Holdings vs. Wyndham Hotels Resorts | Sonder Holdings vs. InterContinental Hotels Group | Sonder Holdings vs. Hyatt Hotels | Sonder Holdings vs. Hilton Worldwide Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |