Correlation Between First Watch and Bim Birlesik
Can any of the company-specific risk be diversified away by investing in both First Watch and Bim Birlesik 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 First Watch and Bim Birlesik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Watch Restaurant and Bim Birlesik Magazalar, you can compare the effects of market volatilities on First Watch and Bim Birlesik 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 First Watch with a short position of Bim Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Watch and Bim Birlesik.
Diversification Opportunities for First Watch and Bim Birlesik
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and Bim is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding First Watch Restaurant and Bim Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bim Birlesik Magazalar and First Watch 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 First Watch Restaurant are associated (or correlated) with Bim Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bim Birlesik Magazalar has no effect on the direction of First Watch i.e., First Watch and Bim Birlesik go up and down completely randomly.
Pair Corralation between First Watch and Bim Birlesik
Given the investment horizon of 90 days First Watch is expected to generate 11.63 times less return on investment than Bim Birlesik. But when comparing it to its historical volatility, First Watch Restaurant is 1.93 times less risky than Bim Birlesik. It trades about 0.01 of its potential returns per unit of risk. Bim Birlesik Magazalar is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 646.00 in Bim Birlesik Magazalar on March 20, 2025 and sell it today you would earn a total of 504.00 from holding Bim Birlesik Magazalar or generate 78.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
First Watch Restaurant vs. Bim Birlesik Magazalar
Performance |
| Timeline |
| First Watch Restaurant |
| Bim Birlesik Magazalar |
First Watch and Bim Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Watch and Bim Birlesik
The main advantage of trading using opposite First Watch and Bim Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Watch position performs unexpectedly, Bim Birlesik 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 Bim Birlesik will offset losses from the drop in Bim Birlesik's long position.| First Watch vs. Dine Brands Global | First Watch vs. Bloomin Brands | First Watch vs. BJs Restaurants | First Watch vs. The Cheesecake Factory |
| Bim Birlesik vs. Evergy, | Bim Birlesik vs. KVH Industries | Bim Birlesik vs. NiSource | Bim Birlesik vs. Dave Busters Entertainment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |