Correlation Between TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153

Can any of the company-specific risk be diversified away by investing in both TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153 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 TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153, you can compare the effects of market volatilities on TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153 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 TEXAS ROADHOUSE with a short position of INNELEC MULTIMMINHEO153. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153.

Diversification Opportunities for TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153

0.59

Correlation Coefficient

TEXAS ROADHOUSE  INNELEC MULTIMMINHEO153

Very weak diversification

The 3 months correlation between TEXAS and INNELEC is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INNELEC MULTIMMINHEO153 and TEXAS ROADHOUSE 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 TEXAS ROADHOUSE are associated (or correlated) with INNELEC MULTIMMINHEO153. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INNELEC MULTIMMINHEO153 has no effect on the direction of TEXAS ROADHOUSE i.e., TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153 go up and down completely randomly.

Pair Corralation between TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153

Assuming the 90 days trading horizon TEXAS ROADHOUSE is expected to generate 1.64 times less return on investment than INNELEC MULTIMMINHEO153. But when comparing it to its historical volatility, TEXAS ROADHOUSE is 1.28 times less risky than INNELEC MULTIMMINHEO153. It trades about 0.12 of its potential returns per unit of risk. INNELEC MULTIMMINHEO153 is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  268.00  in INNELEC MULTIMMINHEO153 on April 22, 2025 and sell it today you would earn a total of  66.00  from holding INNELEC MULTIMMINHEO153 or generate 24.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

TEXAS ROADHOUSE  vs.  INNELEC MULTIMMINHEO153

TEXAS ROADHOUSE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TEXAS ROADHOUSE are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, TEXAS ROADHOUSE exhibited solid returns over the last few months and may actually be approaching a breakup point.

INNELEC MULTIMMINHEO153

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in INNELEC MULTIMMINHEO153 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, INNELEC MULTIMMINHEO153 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153

The main advantage of trading using opposite TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEXAS ROADHOUSE position performs unexpectedly, INNELEC MULTIMMINHEO153 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 INNELEC MULTIMMINHEO153 will offset losses from the drop in INNELEC MULTIMMINHEO153's long position.

The idea behind TEXAS ROADHOUSE and INNELEC MULTIMMINHEO153 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.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.