Correlation Between FAT Brands and Leslies
Can any of the company-specific risk be diversified away by investing in both FAT Brands and Leslies 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 FAT Brands and Leslies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAT Brands and Leslies, you can compare the effects of market volatilities on FAT Brands and Leslies 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 FAT Brands with a short position of Leslies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAT Brands and Leslies.
Diversification Opportunities for FAT Brands and Leslies
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FAT and Leslies is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding FAT Brands and Leslies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leslies and FAT Brands 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 FAT Brands are associated (or correlated) with Leslies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leslies has no effect on the direction of FAT Brands i.e., FAT Brands and Leslies go up and down completely randomly.
Pair Corralation between FAT Brands and Leslies
Considering the 90-day investment horizon FAT Brands is expected to under-perform the Leslies. In addition to that, FAT Brands is 1.3 times more volatile than Leslies. It trades about -0.21 of its total potential returns per unit of risk. Leslies is currently generating about -0.19 per unit of volatility. If you would invest 664.00 in Leslies on August 29, 2025 and sell it today you would lose (367.00) from holding Leslies or give up 55.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FAT Brands vs. Leslies
Performance |
| Timeline |
| FAT Brands |
| Leslies |
FAT Brands and Leslies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAT Brands and Leslies
The main advantage of trading using opposite FAT Brands and Leslies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAT Brands position performs unexpectedly, Leslies 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 Leslies will offset losses from the drop in Leslies' long position.| FAT Brands vs. Topsports International Holdings | FAT Brands vs. BlackRock Investment Quality | FAT Brands vs. Canlan Ice Sports | FAT Brands vs. Western Asset Investment |
| Leslies vs. Retail Food Group | Leslies vs. Information Planning LTD | Leslies vs. Upper Street Marketing | Leslies vs. Globe Trade Centre |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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