Correlation Between Auburn National and Flanigans Enterprises

Can any of the company-specific risk be diversified away by investing in both Auburn National and Flanigans Enterprises 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 Auburn National and Flanigans Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Auburn National Bancorporation and Flanigans Enterprises, you can compare the effects of market volatilities on Auburn National and Flanigans Enterprises 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 Auburn National with a short position of Flanigans Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auburn National and Flanigans Enterprises.

Diversification Opportunities for Auburn National and Flanigans Enterprises

0.8

Correlation Coefficient

Auburn National  Flanigans Enterprises

Very poor diversification

The 3 months correlation between Auburn and Flanigans is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Auburn National Bancorp. and Flanigans Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flanigans Enterprises and Auburn National 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 Auburn National Bancorporation are associated (or correlated) with Flanigans Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flanigans Enterprises has no effect on the direction of Auburn National i.e., Auburn National and Flanigans Enterprises go up and down completely randomly.

Pair Corralation between Auburn National and Flanigans Enterprises

Given the investment horizon of 90 days Auburn National is expected to generate 1.09 times less return on investment than Flanigans Enterprises. But when comparing it to its historical volatility, Auburn National Bancorporation is 1.54 times less risky than Flanigans Enterprises. It trades about 0.18 of its potential returns per unit of risk. Flanigans Enterprises is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2,348  in Flanigans Enterprises on May 7, 2025 and sell it today you would earn a total of  754.00  from holding Flanigans Enterprises or generate 32.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.28%
Values	Daily Returns

Auburn National Bancorp.  vs.  Flanigans Enterprises

Auburn National Banc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Auburn National Bancorporation are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental drivers, Auburn National displayed solid returns over the last few months and may actually be approaching a breakup point.

Flanigans Enterprises

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Flanigans Enterprises are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Flanigans Enterprises disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Auburn National and Flanigans Enterprises

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

The idea behind Auburn National Bancorporation and Flanigans Enterprises 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.