Correlation Between Bagger Daves and Southern Concepts

Can any of the company-specific risk be diversified away by investing in both Bagger Daves and Southern Concepts 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 Bagger Daves and Southern Concepts into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bagger Daves Burger and Southern Concepts Restaurant, you can compare the effects of market volatilities on Bagger Daves and Southern Concepts 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 Bagger Daves with a short position of Southern Concepts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bagger Daves and Southern Concepts.

Diversification Opportunities for Bagger Daves and Southern Concepts

0.0

Correlation Coefficient

Bagger Daves  Southern Concepts

Pay attention - limited upside

The 3 months correlation between Bagger and Southern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bagger Daves Burger and Southern Concepts Restaurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Concepts and Bagger Daves 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 Bagger Daves Burger are associated (or correlated) with Southern Concepts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Concepts has no effect on the direction of Bagger Daves i.e., Bagger Daves and Southern Concepts go up and down completely randomly.

Pair Corralation between Bagger Daves and Southern Concepts

If you would invest  2.84  in Bagger Daves Burger on May 12, 2025 and sell it today you would earn a total of  0.86  from holding Bagger Daves Burger or generate 30.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Bagger Daves Burger  vs.  Southern Concepts Restaurant

Bagger Daves Burger

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Bagger Daves Burger are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Bagger Daves sustained solid returns over the last few months and may actually be approaching a breakup point.

Southern Concepts

Risk-Adjusted Performance

Weakest

Over the last 90 days Southern Concepts Restaurant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Southern Concepts is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Bagger Daves and Southern Concepts

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

The idea behind Bagger Daves Burger and Southern Concepts Restaurant 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.