Correlation Between OZ Minerals and First Watch
Can any of the company-specific risk be diversified away by investing in both OZ Minerals and First Watch 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 OZ Minerals and First Watch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OZ Minerals Limited and First Watch Restaurant, you can compare the effects of market volatilities on OZ Minerals and First Watch 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 OZ Minerals with a short position of First Watch. Check out your portfolio center. Please also check ongoing floating volatility patterns of OZ Minerals and First Watch.
Diversification Opportunities for OZ Minerals and First Watch
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OZMLF and First is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding OZ Minerals Limited and First Watch Restaurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Watch Restaurant and OZ Minerals 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 OZ Minerals Limited are associated (or correlated) with First Watch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Watch Restaurant has no effect on the direction of OZ Minerals i.e., OZ Minerals and First Watch go up and down completely randomly.
Pair Corralation between OZ Minerals and First Watch
If you would invest 1,866 in First Watch Restaurant on September 24, 2024 and sell it today you would earn a total of 22.00 from holding First Watch Restaurant or generate 1.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
OZ Minerals Limited vs. First Watch Restaurant
Performance |
Timeline |
OZ Minerals Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Watch Restaurant |
OZ Minerals and First Watch Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OZ Minerals and First Watch
The main advantage of trading using opposite OZ Minerals and First Watch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OZ Minerals position performs unexpectedly, First Watch 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 First Watch will offset losses from the drop in First Watch's long position.OZ Minerals vs. ChampionX | OZ Minerals vs. Parker Hannifin | OZ Minerals vs. Sligro Food Group | OZ Minerals vs. Emerson Electric |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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