Correlation Between Restaurant Brands and Aci Worldwide

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Restaurant Brands and Aci Worldwide 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 Restaurant Brands and Aci Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Restaurant Brands International and Aci Worldwide, you can compare the effects of market volatilities on Restaurant Brands and Aci Worldwide 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 Restaurant Brands with a short position of Aci Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Restaurant Brands and Aci Worldwide.

Diversification Opportunities for Restaurant Brands and Aci Worldwide

-0.15
  Correlation Coefficient

Good diversification

The 3 months correlation between Restaurant and Aci Worldwide is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Restaurant Brands Internationa and Aci Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aci Worldwide and Restaurant 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 Restaurant Brands International are associated (or correlated) with Aci Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aci Worldwide has no effect on the direction of Restaurant Brands i.e., Restaurant Brands and Aci Worldwide go up and down completely randomly.

Pair Corralation between Restaurant Brands and Aci Worldwide

Considering the 90-day investment horizon Restaurant Brands International is expected to generate 0.66 times more return on investment than Aci Worldwide. However, Restaurant Brands International is 1.53 times less risky than Aci Worldwide. It trades about 0.12 of its potential returns per unit of risk. Aci Worldwide is currently generating about -0.06 per unit of risk. If you would invest  5,145  in Restaurant Brands International on August 29, 2022 and sell it today you would earn a total of  1,506  from holding Restaurant Brands International or generate 29.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.21%
ValuesDaily Returns

Restaurant Brands Internationa  vs.  Aci Worldwide

 Performance (%) 
       Timeline  
Restaurant Brands 
Restaurant Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Restaurant Brands International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Restaurant Brands reported solid returns over the last few months and may actually be approaching a breakup point.

Restaurant Price Channel

Aci Worldwide 
Aci Worldwide Performance
0 of 100
Over the last 90 days Aci Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's forward indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Aci Worldwide Price Channel

Restaurant Brands and Aci Worldwide Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Restaurant Brands and Aci Worldwide

The main advantage of trading using opposite Restaurant Brands and Aci Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Restaurant Brands position performs unexpectedly, Aci Worldwide 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 Aci Worldwide will offset losses from the drop in Aci Worldwide's long position.
Restaurant Brands vs. Darden Restaurants
Restaurant Brands vs. Chipotle Mexican Grill
Restaurant Brands vs. McDonalds Corp
Restaurant Brands vs. Starbucks Corp
The idea behind Restaurant Brands International and Aci Worldwide pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Aci Worldwide vs. Vmware Inc
Aci Worldwide vs. Synopsys
Aci Worldwide vs. Verisign
Aci Worldwide vs. Oracle Corp
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go