Correlation Between ANTHEM and Texas Roadhouse
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By analyzing existing cross correlation between ANTHEM INC 455 and Texas Roadhouse, you can compare the effects of market volatilities on ANTHEM and Texas Roadhouse 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 ANTHEM with a short position of Texas Roadhouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTHEM and Texas Roadhouse.
Diversification Opportunities for ANTHEM and Texas Roadhouse
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANTHEM and Texas is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding ANTHEM INC 455 and Texas Roadhouse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Texas Roadhouse and ANTHEM 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 ANTHEM INC 455 are associated (or correlated) with Texas Roadhouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Texas Roadhouse has no effect on the direction of ANTHEM i.e., ANTHEM and Texas Roadhouse go up and down completely randomly.
Pair Corralation between ANTHEM and Texas Roadhouse
Assuming the 90 days trading horizon ANTHEM is expected to generate 1.4 times less return on investment than Texas Roadhouse. But when comparing it to its historical volatility, ANTHEM INC 455 is 1.52 times less risky than Texas Roadhouse. It trades about 0.21 of its potential returns per unit of risk. Texas Roadhouse is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 18,811 in Texas Roadhouse on August 28, 2024 and sell it today you would earn a total of 1,401 from holding Texas Roadhouse or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
ANTHEM INC 455 vs. Texas Roadhouse
Performance |
| Timeline |
| ANTHEM INC 455 |
| Texas Roadhouse |
ANTHEM and Texas Roadhouse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTHEM and Texas Roadhouse
The main advantage of trading using opposite ANTHEM and Texas Roadhouse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTHEM position performs unexpectedly, Texas Roadhouse 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 Texas Roadhouse will offset losses from the drop in Texas Roadhouse's long position.| ANTHEM vs. Texas Roadhouse | ANTHEM vs. Verra Mobility Corp | ANTHEM vs. Sun Country Airlines | ANTHEM vs. The Cheesecake Factory |
| Texas Roadhouse vs. Brinker International | Texas Roadhouse vs. BJs Restaurants | Texas Roadhouse vs. Papa Johns International | Texas Roadhouse vs. Bloomin Brands |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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