Correlation Between Presidio Property and FAT Brands
Can any of the company-specific risk be diversified away by investing in both Presidio Property and FAT 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 Presidio Property and FAT Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Presidio Property Trust and FAT Brands, you can compare the effects of market volatilities on Presidio Property and FAT 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 Presidio Property with a short position of FAT Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Presidio Property and FAT Brands.
Diversification Opportunities for Presidio Property and FAT Brands
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Presidio and FAT is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Presidio Property Trust and FAT Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAT Brands and Presidio Property 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 Presidio Property Trust are associated (or correlated) with FAT Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAT Brands has no effect on the direction of Presidio Property i.e., Presidio Property and FAT Brands go up and down completely randomly.
Pair Corralation between Presidio Property and FAT Brands
Given the investment horizon of 90 days Presidio Property Trust is expected to generate 4.72 times more return on investment than FAT Brands. However, Presidio Property is 4.72 times more volatile than FAT Brands. It trades about 0.04 of its potential returns per unit of risk. FAT Brands is currently generating about 0.04 per unit of risk. If you would invest 64.00 in Presidio Property Trust on November 2, 2024 and sell it today you would earn a total of 5.00 from holding Presidio Property Trust or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Presidio Property Trust vs. FAT Brands
Performance |
| Timeline |
| Presidio Property Trust |
| FAT Brands |
Presidio Property and FAT Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Presidio Property and FAT Brands
The main advantage of trading using opposite Presidio Property and FAT Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presidio Property position performs unexpectedly, FAT 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 FAT Brands will offset losses from the drop in FAT Brands' long position.| Presidio Property vs. Investcorp Credit Management | Presidio Property vs. Medalist Diversified Reit | Presidio Property vs. Mingzhu Logistics 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |