Correlation Between Flanigans Enterprises and Jack In
Can any of the company-specific risk be diversified away by investing in both Flanigans Enterprises and Jack In 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 Flanigans Enterprises and Jack In into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flanigans Enterprises and Jack In, you can compare the effects of market volatilities on Flanigans Enterprises and Jack In 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 Flanigans Enterprises with a short position of Jack In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flanigans Enterprises and Jack In.
Diversification Opportunities for Flanigans Enterprises and Jack In
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Flanigans and Jack is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Flanigans Enterprises and Jack In The in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack In and Flanigans Enterprises 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 Flanigans Enterprises are associated (or correlated) with Jack In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack In has no effect on the direction of Flanigans Enterprises i.e., Flanigans Enterprises and Jack In go up and down completely randomly.
Pair Corralation between Flanigans Enterprises and Jack In
Considering the 90-day investment horizon Flanigans Enterprises is expected to generate 1.15 times more return on investment than Jack In. However, Flanigans Enterprises is 1.15 times more volatile than Jack In. It trades about 0.18 of its potential returns per unit of risk. Jack In is currently generating about -0.08 per unit of risk. If you would invest 2,534 in Flanigans Enterprises on December 29, 2023 and sell it today you would earn a total of 186.00 from holding Flanigans Enterprises or generate 7.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 91.3% |
Values | Daily Returns |
Flanigans Enterprises vs. Jack In The
Performance |
Timeline |
Flanigans Enterprises |
Jack In |
Flanigans Enterprises and Jack In Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Flanigans Enterprises and Jack In
The main advantage of trading using opposite Flanigans Enterprises and Jack In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flanigans Enterprises position performs unexpectedly, Jack In 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 Jack In will offset losses from the drop in Jack In's long position.Flanigans Enterprises vs. Hyatt Hotels | Flanigans Enterprises vs. Smart Share Global | Flanigans Enterprises vs. Wyndham Hotels Resorts | Flanigans Enterprises vs. WW International |
Jack In vs. Hyatt Hotels | Jack In vs. Smart Share Global | Jack In vs. Wyndham Hotels Resorts | Jack In 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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