Correlation Between Just Kitchen and Bagger Daves

Can any of the company-specific risk be diversified away by investing in both Just Kitchen and Bagger Daves 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 Just Kitchen and Bagger Daves into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Just Kitchen Holdings and Bagger Daves Burger, you can compare the effects of market volatilities on Just Kitchen and Bagger Daves 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 Just Kitchen with a short position of Bagger Daves. Check out your portfolio center. Please also check ongoing floating volatility patterns of Just Kitchen and Bagger Daves.

Diversification Opportunities for Just Kitchen and Bagger Daves

0.23

Correlation Coefficient

Just Kitchen  Bagger Daves

Modest diversification

The 3 months correlation between Just and Bagger is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Just Kitchen Holdings and Bagger Daves Burger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bagger Daves Burger and Just Kitchen 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 Just Kitchen Holdings are associated (or correlated) with Bagger Daves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bagger Daves Burger has no effect on the direction of Just Kitchen i.e., Just Kitchen and Bagger Daves go up and down completely randomly.

Pair Corralation between Just Kitchen and Bagger Daves

If you would invest  7.00  in Bagger Daves Burger on September 5, 2024 and sell it today you would lose (0.20) from holding Bagger Daves Burger or give up 2.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.8%
Values	Daily Returns

Just Kitchen Holdings  vs.  Bagger Daves Burger

Just Kitchen Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

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

Bagger Daves Burger

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bagger Daves Burger are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Bagger Daves may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Just Kitchen and Bagger Daves

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

The idea behind Just Kitchen Holdings and Bagger Daves Burger 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.