Correlation Between First Watch and Interactive Strength

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both First Watch and Interactive Strength 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 First Watch and Interactive Strength into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Watch Restaurant and Interactive Strength Common, you can compare the effects of market volatilities on First Watch and Interactive Strength 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 First Watch with a short position of Interactive Strength. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Watch and Interactive Strength.

Diversification Opportunities for First Watch and Interactive Strength

FirstInteractiveDiversified AwayFirstInteractiveDiversified Away100%
-0.26
  Correlation Coefficient

Very good diversification

The 3 months correlation between First and Interactive is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding First Watch Restaurant and Interactive Strength Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interactive Strength and First Watch 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 First Watch Restaurant are associated (or correlated) with Interactive Strength. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interactive Strength has no effect on the direction of First Watch i.e., First Watch and Interactive Strength go up and down completely randomly.

Pair Corralation between First Watch and Interactive Strength

Given the investment horizon of 90 days First Watch Restaurant is expected to generate 0.35 times more return on investment than Interactive Strength. However, First Watch Restaurant is 2.82 times less risky than Interactive Strength. It trades about 0.13 of its potential returns per unit of risk. Interactive Strength Common is currently generating about -0.21 per unit of risk. If you would invest  1,746  in First Watch Restaurant on November 20, 2024 and sell it today you would earn a total of  315.00  from holding First Watch Restaurant or generate 18.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

First Watch Restaurant  vs.  Interactive Strength Common

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -70-60-50-40-30-20-100
JavaScript chart by amCharts 3.21.15FWRG TRNR
       Timeline  
First Watch Restaurant 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in First Watch Restaurant are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, First Watch reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb171819202122
Interactive Strength 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Interactive Strength Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.522.533.54

First Watch and Interactive Strength Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.76-6.6-4.45-2.3-0.152.014.166.318.4610.62 0.010.020.030.040.05
JavaScript chart by amCharts 3.21.15FWRG TRNR
       Returns  

Pair Trading with First Watch and Interactive Strength

The main advantage of trading using opposite First Watch and Interactive Strength positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Watch position performs unexpectedly, Interactive Strength 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 Interactive Strength will offset losses from the drop in Interactive Strength's long position.
The idea behind First Watch Restaurant and Interactive Strength Common 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
CEOs Directory
Screen CEOs from public companies around the world