Correlation Between Bagger Daves and Nathans Famous
Can any of the company-specific risk be diversified away by investing in both Bagger Daves and Nathans Famous 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 Bagger Daves and Nathans Famous into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bagger Daves Burger and Nathans Famous, you can compare the effects of market volatilities on Bagger Daves and Nathans Famous 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 Bagger Daves with a short position of Nathans Famous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bagger Daves and Nathans Famous.
Diversification Opportunities for Bagger Daves and Nathans Famous
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bagger and Nathans is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bagger Daves Burger and Nathans Famous in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nathans Famous and Bagger Daves 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 Bagger Daves Burger are associated (or correlated) with Nathans Famous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nathans Famous has no effect on the direction of Bagger Daves i.e., Bagger Daves and Nathans Famous go up and down completely randomly.
Pair Corralation between Bagger Daves and Nathans Famous
Given the investment horizon of 90 days Bagger Daves Burger is expected to under-perform the Nathans Famous. In addition to that, Bagger Daves is 1.54 times more volatile than Nathans Famous. It trades about -0.08 of its total potential returns per unit of risk. Nathans Famous is currently generating about 0.09 per unit of volatility. If you would invest 8,689 in Nathans Famous on December 5, 2024 and sell it today you would earn a total of 1,184 from holding Nathans Famous or generate 13.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 93.65% |
Values | Daily Returns |
Bagger Daves Burger vs. Nathans Famous
Performance |
Timeline |
Bagger Daves Burger |
Nathans Famous |
Bagger Daves and Nathans Famous Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bagger Daves and Nathans Famous
The main advantage of trading using opposite Bagger Daves and Nathans Famous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bagger Daves position performs unexpectedly, Nathans Famous 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 Nathans Famous will offset losses from the drop in Nathans Famous' long position.Bagger Daves vs. Alsea SAB de | Bagger Daves vs. Marstons PLC | Bagger Daves vs. Marstons PLC | Bagger Daves vs. Spot Coffee |
Nathans Famous vs. Noble Romans | Nathans Famous vs. Good Times Restaurants | Nathans Famous vs. Bagger Daves Burger | Nathans Famous vs. Flanigans Enterprises |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |