Correlation Between Carrols Restaurant and Good Times
Can any of the company-specific risk be diversified away by investing in both Carrols Restaurant and Good Times 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 Carrols Restaurant and Good Times into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carrols Restaurant Group and Good Times Restaurants, you can compare the effects of market volatilities on Carrols Restaurant and Good Times 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 Carrols Restaurant with a short position of Good Times. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carrols Restaurant and Good Times.
Diversification Opportunities for Carrols Restaurant and Good Times
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carrols and Good is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Carrols Restaurant Group and Good Times Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Good Times Restaurants and Carrols 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 Carrols Restaurant Group are associated (or correlated) with Good Times. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Good Times Restaurants has no effect on the direction of Carrols Restaurant i.e., Carrols Restaurant and Good Times go up and down completely randomly.
Pair Corralation between Carrols Restaurant and Good Times
If you would invest 254.00 in Good Times Restaurants on December 7, 2024 and sell it today you would lose (13.00) from holding Good Times Restaurants or give up 5.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Carrols Restaurant Group vs. Good Times Restaurants
Performance |
Timeline |
Carrols Restaurant |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Good Times Restaurants |
Carrols Restaurant and Good Times Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Carrols Restaurant and Good Times
The main advantage of trading using opposite Carrols Restaurant and Good Times positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carrols Restaurant position performs unexpectedly, Good Times 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 Good Times will offset losses from the drop in Good Times' long position.Carrols Restaurant vs. FAT Brands | Carrols Restaurant vs. Potbelly Co | Carrols Restaurant vs. BJs Restaurants | Carrols Restaurant vs. One Group Hospitality |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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