Correlation Between McDonalds and Jack In

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

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

Diversification Opportunities for McDonalds and Jack In

0.44

Correlation Coefficient

McDonalds  Jack In

Very weak diversification

The 3 months correlation between McDonalds and Jack is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding McDonalds and Jack In The in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack In and McDonalds 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 McDonalds are associated (or correlated) with Jack In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack In has no effect on the direction of McDonalds i.e., McDonalds and Jack In go up and down completely randomly.

Pair Corralation between McDonalds and Jack In

Considering the 90-day investment horizon McDonalds is expected to generate 5.13 times less return on investment than Jack In. But when comparing it to its historical volatility, McDonalds is 3.76 times less risky than Jack In. It trades about 0.12 of its potential returns per unit of risk. Jack In The is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,550  in Jack In The on November 20, 2025 and sell it today you would earn a total of  651.00  from holding Jack In The or generate 42.0% return on investment over 90 days.

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

McDonalds  vs.  Jack In The

McDonalds

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in McDonalds are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, McDonalds may actually be approaching a critical reversion point that can send shares even higher in March 2026.

Jack In

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jack In The are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Jack In disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with McDonalds and Jack In

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

The idea behind McDonalds and Jack In The 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.