Correlation Between Smart Share and El Pollo
Can any of the company-specific risk be diversified away by investing in both Smart Share and El Pollo 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 Smart Share and El Pollo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Share Global and El Pollo Loco, you can compare the effects of market volatilities on Smart Share and El Pollo 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 Smart Share with a short position of El Pollo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Share and El Pollo.
Diversification Opportunities for Smart Share and El Pollo
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Smart and LOCO is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Smart Share Global and El Pollo Loco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Pollo Loco and Smart Share 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 Smart Share Global are associated (or correlated) with El Pollo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Pollo Loco has no effect on the direction of Smart Share i.e., Smart Share and El Pollo go up and down completely randomly.
Pair Corralation between Smart Share and El Pollo
Allowing for the 90-day total investment horizon Smart Share Global is expected to generate 0.73 times more return on investment than El Pollo. However, Smart Share Global is 1.37 times less risky than El Pollo. It trades about 0.15 of its potential returns per unit of risk. El Pollo Loco is currently generating about 0.01 per unit of risk. If you would invest 117.00 in Smart Share Global on August 13, 2025 and sell it today you would earn a total of 20.00 from holding Smart Share Global or generate 17.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smart Share Global vs. El Pollo Loco
Performance |
| Timeline |
| Smart Share Global |
| El Pollo Loco |
Smart Share and El Pollo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart Share and El Pollo
The main advantage of trading using opposite Smart Share and El Pollo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Share position performs unexpectedly, El Pollo 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 El Pollo will offset losses from the drop in El Pollo's long position.| Smart Share vs. iShares Short Term California | Smart Share vs. JJill Inc | Smart Share vs. Studio City International | Smart Share vs. Dogness International Corp |
| El Pollo vs. Jack In The | El Pollo vs. Portillos | El Pollo vs. Dine Brands Global | El Pollo vs. RCI Hospitality 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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