Correlation Between Applovin Corp and First Watch
Can any of the company-specific risk be diversified away by investing in both Applovin Corp 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 Applovin Corp and First Watch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applovin Corp and First Watch Restaurant, you can compare the effects of market volatilities on Applovin Corp 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 Applovin Corp with a short position of First Watch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applovin Corp and First Watch.
Diversification Opportunities for Applovin Corp and First Watch
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Applovin and First is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Applovin Corp 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 Applovin Corp 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 Applovin Corp 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 Applovin Corp i.e., Applovin Corp and First Watch go up and down completely randomly.
Pair Corralation between Applovin Corp and First Watch
Considering the 90-day investment horizon Applovin Corp is expected to generate 1.71 times more return on investment than First Watch. However, Applovin Corp is 1.71 times more volatile than First Watch Restaurant. It trades about 0.13 of its potential returns per unit of risk. First Watch Restaurant is currently generating about 0.03 per unit of risk. If you would invest 7,753 in Applovin Corp on April 22, 2025 and sell it today you would earn a total of 28,693 from holding Applovin Corp or generate 370.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Applovin Corp vs. First Watch Restaurant
Performance |
| Timeline |
| Applovin Corp |
| First Watch Restaurant |
Applovin Corp and First Watch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applovin Corp and First Watch
The main advantage of trading using opposite Applovin Corp and First Watch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applovin Corp 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.| Applovin Corp vs. Workday | Applovin Corp vs. Snowflake | Applovin Corp vs. C3 Ai Inc | Applovin Corp vs. Zoom Video Communications |
| First Watch vs. Cannae Holdings | First Watch vs. Brinker International | First Watch vs. Jack In The | First Watch vs. Biglari Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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