Correlation Between Premium Catering and El Pollo
Can any of the company-specific risk be diversified away by investing in both Premium Catering 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 Premium Catering and El Pollo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premium Catering Limited and El Pollo Loco, you can compare the effects of market volatilities on Premium Catering 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 Premium Catering with a short position of El Pollo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premium Catering and El Pollo.
Diversification Opportunities for Premium Catering and El Pollo
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Premium and LOCO is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Premium Catering Limited 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 Premium Catering 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 Premium Catering Limited 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 Premium Catering i.e., Premium Catering and El Pollo go up and down completely randomly.
Pair Corralation between Premium Catering and El Pollo
Allowing for the 90-day total investment horizon Premium Catering Limited is expected to generate 1.91 times more return on investment than El Pollo. However, Premium Catering is 1.91 times more volatile than El Pollo Loco. It trades about 0.12 of its potential returns per unit of risk. El Pollo Loco is currently generating about 0.06 per unit of risk. If you would invest 701.00 in Premium Catering Limited on September 7, 2025 and sell it today you would earn a total of 239.00 from holding Premium Catering Limited or generate 34.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premium Catering Limited vs. El Pollo Loco
Performance |
| Timeline |
| Premium Catering |
| El Pollo Loco |
Premium Catering and El Pollo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premium Catering and El Pollo
The main advantage of trading using opposite Premium Catering and El Pollo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premium Catering 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.| Premium Catering vs. LG Display Co | Premium Catering vs. Xtreme Motorsports International | Premium Catering vs. SIGNA Sports United | Premium Catering vs. Interplay Entertainment Corp |
| El Pollo vs. Broadridge Financial Solutions | El Pollo vs. Road King Infrastructure | El Pollo vs. Gaztransport Technigaz SA | El Pollo vs. Quantum Medical Transport |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |