Correlation Between Flanigans Enterprises and One Group

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Can any of the company-specific risk be diversified away by investing in both Flanigans Enterprises and One Group 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 One Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flanigans Enterprises and One Group Hospitality, you can compare the effects of market volatilities on Flanigans Enterprises and One Group 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 One Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flanigans Enterprises and One Group.

Diversification Opportunities for Flanigans Enterprises and One Group

0.56
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Flanigans and One is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Flanigans Enterprises and One Group Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Group Hospitality 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 One Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Group Hospitality has no effect on the direction of Flanigans Enterprises i.e., Flanigans Enterprises and One Group go up and down completely randomly.

Pair Corralation between Flanigans Enterprises and One Group

Considering the 90-day investment horizon Flanigans Enterprises is expected to generate 16.03 times less return on investment than One Group. But when comparing it to its historical volatility, Flanigans Enterprises is 2.49 times less risky than One Group. It trades about 0.01 of its potential returns per unit of risk. One Group Hospitality is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  309.00  in One Group Hospitality on October 21, 2024 and sell it today you would earn a total of  23.00  from holding One Group Hospitality or generate 7.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy97.5%
ValuesDaily Returns

Flanigans Enterprises  vs.  One Group Hospitality

 Performance 
       Timeline  
Flanigans Enterprises 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Flanigans Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Flanigans Enterprises is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
One Group Hospitality 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days One Group Hospitality has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, One Group is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Flanigans Enterprises and One Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Flanigans Enterprises and One Group

The main advantage of trading using opposite Flanigans Enterprises and One Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flanigans Enterprises position performs unexpectedly, One Group 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 One Group will offset losses from the drop in One Group's long position.
The idea behind Flanigans Enterprises and One Group Hospitality 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 CEOs Directory module to screen CEOs from public companies around the world.

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