Correlation Between Wendys and Lottery, Warrants
Can any of the company-specific risk be diversified away by investing in both Wendys and Lottery, Warrants 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 Wendys and Lottery, Warrants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Wendys Co and Lottery, Warrants, you can compare the effects of market volatilities on Wendys and Lottery, Warrants 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 Wendys with a short position of Lottery, Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wendys and Lottery, Warrants.
Diversification Opportunities for Wendys and Lottery, Warrants
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wendys and Lottery, is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding The Wendys Co and Lottery, Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lottery, Warrants and Wendys 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 The Wendys Co are associated (or correlated) with Lottery, Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lottery, Warrants has no effect on the direction of Wendys i.e., Wendys and Lottery, Warrants go up and down completely randomly.
Pair Corralation between Wendys and Lottery, Warrants
Considering the 90-day investment horizon The Wendys Co is expected to under-perform the Lottery, Warrants. But the stock apears to be less risky and, when comparing its historical volatility, The Wendys Co is 6.48 times less risky than Lottery, Warrants. The stock trades about -0.21 of its potential returns per unit of risk. The Lottery, Warrants is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 0.75 in Lottery, Warrants on August 29, 2024 and sell it today you would earn a total of 0.33 from holding Lottery, Warrants or generate 44.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Wendys Co vs. Lottery, Warrants
Performance |
| Timeline |
| The Wendys |
| Lottery, Warrants |
Wendys and Lottery, Warrants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wendys and Lottery, Warrants
The main advantage of trading using opposite Wendys and Lottery, Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wendys position performs unexpectedly, Lottery, Warrants 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 Lottery, Warrants will offset losses from the drop in Lottery, Warrants' long position.| Wendys vs. Yum Brands | Wendys vs. Dominos Pizza | Wendys vs. Darden Restaurants | Wendys vs. Papa Johns International |
| Lottery, Warrants vs. Lottery, Common Stock | Lottery, Warrants vs. Microvast Holdings | Lottery, Warrants vs. AEye Inc | Lottery, Warrants vs. Bakkt Holdings Warrant |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |