Correlation Between Wendys and GLOBAL
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By analyzing existing cross correlation between The Wendys Co and GLOBAL PAYMENTS INC, you can compare the effects of market volatilities on Wendys and GLOBAL 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 GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wendys and GLOBAL.
Diversification Opportunities for Wendys and GLOBAL
Good diversification
The 3 months correlation between Wendys and GLOBAL is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding The Wendys Co and GLOBAL PAYMENTS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL PAYMENTS INC 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 GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBAL PAYMENTS INC has no effect on the direction of Wendys i.e., Wendys and GLOBAL go up and down completely randomly.
Pair Corralation between Wendys and GLOBAL
Considering the 90-day investment horizon The Wendys Co is expected to under-perform the GLOBAL. In addition to that, Wendys is 1.9 times more volatile than GLOBAL PAYMENTS INC. It trades about -0.11 of its total potential returns per unit of risk. GLOBAL PAYMENTS INC is currently generating about -0.19 per unit of volatility. If you would invest 9,071 in GLOBAL PAYMENTS INC on September 12, 2024 and sell it today you would lose (687.00) from holding GLOBAL PAYMENTS INC or give up 7.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
The Wendys Co vs. GLOBAL PAYMENTS INC
Performance |
| Timeline |
| The Wendys |
| GLOBAL PAYMENTS INC |
Wendys and GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wendys and GLOBAL
The main advantage of trading using opposite Wendys and GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wendys position performs unexpectedly, GLOBAL 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 GLOBAL will offset losses from the drop in GLOBAL's long position.| Wendys vs. Yum Brands | Wendys vs. Dominos Pizza | Wendys vs. Darden Restaurants | Wendys vs. Papa Johns International |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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