Correlation Between Wendys and BHCCN
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By analyzing existing cross correlation between The Wendys Co and BHCCN 11 30 SEP 28, you can compare the effects of market volatilities on Wendys and BHCCN 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 BHCCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wendys and BHCCN.
Diversification Opportunities for Wendys and BHCCN
Significant diversification
The 3 months correlation between Wendys and BHCCN is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding The Wendys Co and BHCCN 11 30 SEP 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHCCN 11 30 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 BHCCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHCCN 11 30 has no effect on the direction of Wendys i.e., Wendys and BHCCN go up and down completely randomly.
Pair Corralation between Wendys and BHCCN
Considering the 90-day investment horizon The Wendys Co is expected to generate 0.3 times more return on investment than BHCCN. However, The Wendys Co is 3.29 times less risky than BHCCN. It trades about -0.21 of its potential returns per unit of risk. BHCCN 11 30 SEP 28 is currently generating about -0.2 per unit of risk. If you would invest 1,945 in The Wendys Co on September 5, 2024 and sell it today you would lose (148.00) from holding The Wendys Co or give up 7.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
The Wendys Co vs. BHCCN 11 30 SEP 28
Performance |
| Timeline |
| The Wendys |
| BHCCN 11 30 |
Wendys and BHCCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wendys and BHCCN
The main advantage of trading using opposite Wendys and BHCCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wendys position performs unexpectedly, BHCCN 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 BHCCN will offset losses from the drop in BHCCN's long position.| Wendys vs. Hyatt Hotels | Wendys vs. Smart Share Global | Wendys vs. Wyndham Hotels Resorts | Wendys vs. WW International |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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