Correlation Between Fiesta Restaurant and Brinker International
Can any of the company-specific risk be diversified away by investing in both Fiesta Restaurant and Brinker International 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 Fiesta Restaurant and Brinker International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiesta Restaurant Group and Brinker International, you can compare the effects of market volatilities on Fiesta Restaurant and Brinker International 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 Fiesta Restaurant with a short position of Brinker International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiesta Restaurant and Brinker International.
Diversification Opportunities for Fiesta Restaurant and Brinker International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fiesta and Brinker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fiesta Restaurant Group and Brinker International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinker International and Fiesta Restaurant 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 Fiesta Restaurant Group are associated (or correlated) with Brinker International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinker International has no effect on the direction of Fiesta Restaurant i.e., Fiesta Restaurant and Brinker International go up and down completely randomly.
Pair Corralation between Fiesta Restaurant and Brinker International
If you would invest 3,054 in Brinker International on December 2, 2024 and sell it today you would earn a total of 13,429 from holding Brinker International or generate 439.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Fiesta Restaurant Group vs. Brinker International
Performance |
Timeline |
Fiesta Restaurant |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Brinker International |
Fiesta Restaurant and Brinker International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fiesta Restaurant and Brinker International
The main advantage of trading using opposite Fiesta Restaurant and Brinker International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiesta Restaurant position performs unexpectedly, Brinker International 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 Brinker International will offset losses from the drop in Brinker International's long position.Fiesta Restaurant vs. BJs Restaurants | Fiesta Restaurant vs. Dine Brands Global | Fiesta Restaurant vs. Brinker International | Fiesta Restaurant vs. FAT Brands |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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