Correlation Between Texas Roadhouse and Equinox Gold
Can any of the company-specific risk be diversified away by investing in both Texas Roadhouse and Equinox Gold 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 Texas Roadhouse and Equinox Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Texas Roadhouse and Equinox Gold Corp, you can compare the effects of market volatilities on Texas Roadhouse and Equinox Gold 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 Texas Roadhouse with a short position of Equinox Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Texas Roadhouse and Equinox Gold.
Diversification Opportunities for Texas Roadhouse and Equinox Gold
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Texas and Equinox is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Texas Roadhouse and Equinox Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinox Gold Corp and Texas Roadhouse 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 Texas Roadhouse are associated (or correlated) with Equinox Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinox Gold Corp has no effect on the direction of Texas Roadhouse i.e., Texas Roadhouse and Equinox Gold go up and down completely randomly.
Pair Corralation between Texas Roadhouse and Equinox Gold
Assuming the 90 days horizon Texas Roadhouse is expected to generate 0.48 times more return on investment than Equinox Gold. However, Texas Roadhouse is 2.07 times less risky than Equinox Gold. It trades about 0.14 of its potential returns per unit of risk. Equinox Gold Corp is currently generating about 0.05 per unit of risk. If you would invest 10,543 in Texas Roadhouse on September 14, 2024 and sell it today you would earn a total of 7,952 from holding Texas Roadhouse or generate 75.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Texas Roadhouse vs. Equinox Gold Corp
Performance |
| Timeline |
| Texas Roadhouse |
| Equinox Gold Corp |
Texas Roadhouse and Equinox Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Texas Roadhouse and Equinox Gold
The main advantage of trading using opposite Texas Roadhouse and Equinox Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Texas Roadhouse position performs unexpectedly, Equinox Gold 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 Equinox Gold will offset losses from the drop in Equinox Gold's long position.| Texas Roadhouse vs. Starbucks | Texas Roadhouse vs. Superior Plus Corp | Texas Roadhouse vs. SIVERS SEMICONDUCTORS AB | Texas Roadhouse vs. NorAm Drilling AS |
| Equinox Gold vs. Global Ship Lease | Equinox Gold vs. Singapore Telecommunications Limited | Equinox Gold vs. Astral Foods Limited | Equinox Gold vs. Cogent Communications 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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