Correlation Between Utz Brands and FirstCash

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

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

Diversification Opportunities for Utz Brands and FirstCash

-0.28

Correlation Coefficient

Utz Brands  FirstCash

Very good diversification

The 3 months correlation between Utz and FirstCash is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Utz Brands and FirstCash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstCash and Utz 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 Utz Brands are associated (or correlated) with FirstCash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstCash has no effect on the direction of Utz Brands i.e., Utz Brands and FirstCash go up and down completely randomly.

Pair Corralation between Utz Brands and FirstCash

Considering the 90-day investment horizon Utz Brands is expected to generate 1.15 times more return on investment than FirstCash. However, Utz Brands is 1.15 times more volatile than FirstCash. It trades about 0.1 of its potential returns per unit of risk. FirstCash is currently generating about 0.0 per unit of risk. If you would invest  1,157  in Utz Brands on May 3, 2025 and sell it today you would earn a total of  146.00  from holding Utz Brands or generate 12.62% return on investment over 90 days.

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

Utz Brands  vs.  FirstCash

Utz Brands

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Utz Brands are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Utz Brands showed solid returns over the last few months and may actually be approaching a breakup point.

FirstCash

Risk-Adjusted Performance

Very Weak

Over the last 90 days FirstCash has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, FirstCash 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 Utz Brands and FirstCash

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

The idea behind Utz Brands and FirstCash 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.