Correlation Between Texas Roadhouse and CIMG
Can any of the company-specific risk be diversified away by investing in both Texas Roadhouse and CIMG 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 CIMG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Texas Roadhouse and CIMG Inc, you can compare the effects of market volatilities on Texas Roadhouse and CIMG 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 CIMG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Texas Roadhouse and CIMG.
Diversification Opportunities for Texas Roadhouse and CIMG
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Texas and CIMG is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Texas Roadhouse and CIMG Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMG Inc 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 CIMG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMG Inc has no effect on the direction of Texas Roadhouse i.e., Texas Roadhouse and CIMG go up and down completely randomly.
Pair Corralation between Texas Roadhouse and CIMG
Given the investment horizon of 90 days Texas Roadhouse is expected to generate 8.61 times less return on investment than CIMG. But when comparing it to its historical volatility, Texas Roadhouse is 25.56 times less risky than CIMG. It trades about 0.16 of its potential returns per unit of risk. CIMG Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 263.00 in CIMG Inc on September 2, 2024 and sell it today you would lose (178.00) from holding CIMG Inc or give up 67.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Texas Roadhouse vs. CIMG Inc
Performance |
| Timeline |
| Texas Roadhouse |
| CIMG Inc |
Texas Roadhouse and CIMG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Texas Roadhouse and CIMG
The main advantage of trading using opposite Texas Roadhouse and CIMG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Texas Roadhouse position performs unexpectedly, CIMG 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 CIMG will offset losses from the drop in CIMG's long position.| Texas Roadhouse vs. Brinker International | Texas Roadhouse vs. BJs Restaurants | Texas Roadhouse vs. Papa Johns International | Texas Roadhouse vs. Bloomin Brands |
| CIMG vs. Borealis Foods | CIMG vs. Above Food Ingredients | CIMG vs. Nocera Inc | CIMG vs. Oriental Rise 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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