Correlation Between Flanigans Enterprises and Jack In

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy91.3%
ValuesDaily Returns

Flanigans Enterprises  vs.  Jack In The

 Performance 
       Timeline  
Flanigans Enterprises 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Flanigans Enterprises are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent fundamental indicators, Flanigans Enterprises may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Jack In 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Jack In has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in April 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

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.
The idea behind Flanigans Enterprises and Jack In pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Technical Analysis
Check basic technical indicators and analysis based on most latest market data