Correlation Between Wendys and 00175PAB9

Can any of the company-specific risk be diversified away by investing in both Wendys and 00175PAB9 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 00175PAB9 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 AMN Healthcare 4625, you can compare the effects of market volatilities on Wendys and 00175PAB9 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 00175PAB9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wendys and 00175PAB9.

Diversification Opportunities for Wendys and 00175PAB9

-0.45

Correlation Coefficient

Wendys  00175PAB9

Very good diversification

The 3 months correlation between Wendys and 00175PAB9 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding The Wendys Co and AMN Healthcare 4625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMN Healthcare 4625 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 00175PAB9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMN Healthcare 4625 has no effect on the direction of Wendys i.e., Wendys and 00175PAB9 go up and down completely randomly.

Pair Corralation between Wendys and 00175PAB9

Considering the 90-day investment horizon The Wendys Co is expected to generate 8.2 times more return on investment than 00175PAB9. However, Wendys is 8.2 times more volatile than AMN Healthcare 4625. It trades about 0.08 of its potential returns per unit of risk. AMN Healthcare 4625 is currently generating about -0.17 per unit of risk. If you would invest  1,653  in The Wendys Co on September 4, 2024 and sell it today you would earn a total of  153.00  from holding The Wendys Co or generate 9.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.48%
Values	Daily Returns

The Wendys Co  vs.  AMN Healthcare 4625

The Wendys

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in The Wendys Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Wendys may actually be approaching a critical reversion point that can send shares even higher in January 2025.

AMN Healthcare 4625

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AMN Healthcare 4625 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 00175PAB9 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Wendys and 00175PAB9

The main advantage of trading using opposite Wendys and 00175PAB9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wendys position performs unexpectedly, 00175PAB9 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 00175PAB9 will offset losses from the drop in 00175PAB9's long position.

The idea behind The Wendys Co and AMN Healthcare 4625 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.