Correlation Between Wendys and GLENLN

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

By analyzing existing cross correlation between The Wendys Co and GLENLN 4 16 APR 25, you can compare the effects of market volatilities on Wendys and GLENLN 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 Wendys with a short position of GLENLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wendys and GLENLN.

Diversification Opportunities for Wendys and GLENLN

-0.64

Correlation Coefficient

Wendys  GLENLN

Excellent diversification

The 3 months correlation between Wendys and GLENLN is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding The Wendys Co and GLENLN 4 16 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLENLN 4 16 and Wendys 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 The Wendys Co are associated (or correlated) with GLENLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLENLN 4 16 has no effect on the direction of Wendys i.e., Wendys and GLENLN go up and down completely randomly.

Pair Corralation between Wendys and GLENLN

Considering the 90-day investment horizon The Wendys Co is expected to under-perform the GLENLN. In addition to that, Wendys is 1.97 times more volatile than GLENLN 4 16 APR 25. It trades about -0.14 of its total potential returns per unit of risk. GLENLN 4 16 APR 25 is currently generating about -0.17 per unit of volatility. If you would invest  9,964  in GLENLN 4 16 APR 25 on December 2, 2024 and sell it today you would lose (248.00) from holding GLENLN 4 16 APR 25 or give up 2.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	27.87%
Values	Daily Returns

The Wendys Co  vs.  GLENLN 4 16 APR 25

The Wendys

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Wendys Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

GLENLN 4 16

Risk-Adjusted Performance

Very Weak

Over the last 90 days GLENLN 4 16 APR 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for GLENLN 4 16 APR 25 investors.

Pair Trading with Wendys and GLENLN

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

The idea behind The Wendys Co and GLENLN 4 16 APR 25 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 Transaction History module to view history of all your transactions and understand their impact on performance.