Correlation Between First Watch and Interactive Strength
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
-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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
First Watch Restaurant vs. Interactive Strength Common
Performance |
Timeline |
First Watch Restaurant |
Interactive Strength |
First Watch and Interactive Strength Volatility Contrast
Predicted Return Density |
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.First Watch vs. Dine Brands Global | ||
First Watch vs. Bloomin Brands | ||
First Watch vs. BJs Restaurants | ||
First Watch vs. The Cheesecake Factory |
Interactive Strength vs. Small Cap Premium | ||
Interactive Strength vs. EastGroup Properties | ||
Interactive Strength vs. Academy Sports Outdoors | ||
Interactive Strength vs. MYT Netherlands Parent |
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 |