Correlation Between Jack In and Buffalo Wild

Can any of the company-specific risk be diversified away by investing in both Jack In and Buffalo Wild 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 Jack In and Buffalo Wild into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jack In The and Buffalo Wild Wings, you can compare the effects of market volatilities on Jack In and Buffalo Wild 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 Jack In with a short position of Buffalo Wild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack In and Buffalo Wild.

Diversification Opportunities for Jack In and Buffalo Wild

0.0

Correlation Coefficient

Jack In  Buffalo Wild

Pay attention - limited upside

The 3 months correlation between Jack and Buffalo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jack In The and Buffalo Wild Wings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buffalo Wild Wings and Jack In 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 Jack In The are associated (or correlated) with Buffalo Wild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buffalo Wild Wings has no effect on the direction of Jack In i.e., Jack In and Buffalo Wild go up and down completely randomly.

Pair Corralation between Jack In and Buffalo Wild

If you would invest (100.00) in Buffalo Wild Wings on January 31, 2024 and sell it today you would earn a total of  100.00  from holding Buffalo Wild Wings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jack In The  vs.  Buffalo Wild Wings

Jack In

Risk-Adjusted Performance

0 of 100

Very Weak

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

Buffalo Wild Wings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Buffalo Wild Wings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Buffalo Wild is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Jack In and Buffalo Wild

The main advantage of trading using opposite Jack In and Buffalo Wild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack In position performs unexpectedly, Buffalo Wild 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 Buffalo Wild will offset losses from the drop in Buffalo Wild's long position.

The idea behind Jack In The and Buffalo Wild Wings 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.

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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.