Correlation Between Texas Roadhouse and Occidental
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By analyzing existing cross correlation between Texas Roadhouse and Occidental Petroleum 43, you can compare the effects of market volatilities on Texas Roadhouse and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Texas Roadhouse and Occidental.
Diversification Opportunities for Texas Roadhouse and Occidental
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Texas and Occidental is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Texas Roadhouse and Occidental Petroleum 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum has no effect on the direction of Texas Roadhouse i.e., Texas Roadhouse and Occidental go up and down completely randomly.
Pair Corralation between Texas Roadhouse and Occidental
Given the investment horizon of 90 days Texas Roadhouse is expected to generate 2.03 times more return on investment than Occidental. However, Texas Roadhouse is 2.03 times more volatile than Occidental Petroleum 43. It trades about 0.15 of its potential returns per unit of risk. Occidental Petroleum 43 is currently generating about -0.09 per unit of risk. If you would invest 18,541 in Texas Roadhouse on September 4, 2024 and sell it today you would earn a total of 1,069 from holding Texas Roadhouse or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
Texas Roadhouse vs. Occidental Petroleum 43
Performance |
| Timeline |
| Texas Roadhouse |
| Occidental Petroleum |
Texas Roadhouse and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Texas Roadhouse and Occidental
The main advantage of trading using opposite Texas Roadhouse and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Texas Roadhouse position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Texas Roadhouse vs. Brinker International | Texas Roadhouse vs. BJs Restaurants | Texas Roadhouse vs. Papa Johns International | Texas Roadhouse vs. Bloomin Brands |
| Occidental vs. Sweetgreen | Occidental vs. Texas Roadhouse | Occidental vs. Constellation Brands Class | Occidental vs. PepsiCo |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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