Correlation Between Xiabuxiabu Catering and Texas Roadhouse

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

By analyzing existing cross correlation between Xiabuxiabu Catering Management and Texas Roadhouse, you can compare the effects of market volatilities on Xiabuxiabu Catering and Texas Roadhouse 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 Xiabuxiabu Catering with a short position of Texas Roadhouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiabuxiabu Catering and Texas Roadhouse.

Diversification Opportunities for Xiabuxiabu Catering and Texas Roadhouse

-0.73

Correlation Coefficient

Xiabuxiabu Catering  Texas Roadhouse

Pay attention - limited upside

The 3 months correlation between Xiabuxiabu and Texas is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Xiabuxiabu Catering Management and Texas Roadhouse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Texas Roadhouse and Xiabuxiabu Catering 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 Xiabuxiabu Catering Management are associated (or correlated) with Texas Roadhouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Texas Roadhouse has no effect on the direction of Xiabuxiabu Catering i.e., Xiabuxiabu Catering and Texas Roadhouse go up and down completely randomly.

Pair Corralation between Xiabuxiabu Catering and Texas Roadhouse

If you would invest  14.00  in Xiabuxiabu Catering Management on September 18, 2024 and sell it today you would earn a total of  0.00  from holding Xiabuxiabu Catering Management or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Xiabuxiabu Catering Management  vs.  Texas Roadhouse

Xiabuxiabu Catering

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Texas Roadhouse

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Texas Roadhouse are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Texas Roadhouse demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xiabuxiabu Catering and Texas Roadhouse

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

The idea behind Xiabuxiabu Catering Management and Texas Roadhouse 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.