Correlation Between Brinker International and MAVEN WIRELESS

Can any of the company-specific risk be diversified away by investing in both Brinker International and MAVEN WIRELESS 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 Brinker International and MAVEN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brinker International and MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on Brinker International and MAVEN WIRELESS 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 Brinker International with a short position of MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinker International and MAVEN WIRELESS.

Diversification Opportunities for Brinker International and MAVEN WIRELESS

-0.8

Correlation Coefficient

Brinker International  MAVEN WIRELESS

Pay attention - limited upside

The 3 months correlation between Brinker and MAVEN is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Brinker International and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN and Brinker International 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 Brinker International are associated (or correlated) with MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of Brinker International i.e., Brinker International and MAVEN WIRELESS go up and down completely randomly.

Pair Corralation between Brinker International and MAVEN WIRELESS

Assuming the 90 days horizon Brinker International is expected to generate 0.89 times more return on investment than MAVEN WIRELESS. However, Brinker International is 1.12 times less risky than MAVEN WIRELESS. It trades about 0.11 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about 0.0 per unit of risk. If you would invest  3,740  in Brinker International on October 5, 2024 and sell it today you would earn a total of  8,860  from holding Brinker International or generate 236.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Brinker International  vs.  MAVEN WIRELESS SWEDEN

Brinker International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brinker International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Brinker International is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

MAVEN WIRELESS SWEDEN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MAVEN WIRELESS SWEDEN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Brinker International and MAVEN WIRELESS

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

The idea behind Brinker International and MAVEN WIRELESS SWEDEN 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.