Correlation Between Wendys and 465685AK1
Specify exactly 2 symbols:
By analyzing existing cross correlation between The Wendys Co and ITC HLDGS P, you can compare the effects of market volatilities on Wendys and 465685AK1 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 465685AK1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wendys and 465685AK1.
Diversification Opportunities for Wendys and 465685AK1
Good diversification
The 3 months correlation between Wendys and 465685AK1 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding The Wendys Co and ITC HLDGS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITC HLDGS P 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 465685AK1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITC HLDGS P has no effect on the direction of Wendys i.e., Wendys and 465685AK1 go up and down completely randomly.
Pair Corralation between Wendys and 465685AK1
Considering the 90-day investment horizon The Wendys Co is expected to under-perform the 465685AK1. In addition to that, Wendys is 4.02 times more volatile than ITC HLDGS P. It trades about -0.21 of its total potential returns per unit of risk. ITC HLDGS P is currently generating about -0.25 per unit of volatility. If you would invest 9,777 in ITC HLDGS P on August 29, 2024 and sell it today you would lose (233.00) from holding ITC HLDGS P or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
The Wendys Co vs. ITC HLDGS P
Performance |
| Timeline |
| The Wendys |
| ITC HLDGS P |
Wendys and 465685AK1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wendys and 465685AK1
The main advantage of trading using opposite Wendys and 465685AK1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wendys position performs unexpectedly, 465685AK1 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 465685AK1 will offset losses from the drop in 465685AK1's long position.| Wendys vs. Yum Brands | Wendys vs. Dominos Pizza | Wendys vs. Darden Restaurants | Wendys vs. Papa Johns International |
| 465685AK1 vs. Luxfer Holdings PLC | 465685AK1 vs. Sealed Air | 465685AK1 vs. Eastman Chemical | 465685AK1 vs. Avient Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |