Correlation Between Wendys and A SPAC

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

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

Diversification Opportunities for Wendys and A SPAC

-0.69

Correlation Coefficient

Wendys  A SPAC

Excellent diversification

The 3 months correlation between Wendys and ASPC is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Wendys Co and A SPAC III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC III and Wendys 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 The Wendys Co are associated (or correlated) with A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC III has no effect on the direction of Wendys i.e., Wendys and A SPAC go up and down completely randomly.

Pair Corralation between Wendys and A SPAC

Considering the 90-day investment horizon The Wendys Co is expected to under-perform the A SPAC. In addition to that, Wendys is 9.38 times more volatile than A SPAC III. It trades about -0.37 of its total potential returns per unit of risk. A SPAC III is currently generating about 0.09 per unit of volatility. If you would invest  1,030  in A SPAC III on June 28, 2025 and sell it today you would earn a total of  3.00  from holding A SPAC III or generate 0.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

The Wendys Co  vs.  A SPAC III

The Wendys

Risk-Adjusted Performance

Weakest

Over the last 90 days The Wendys Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in October 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

A SPAC III

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in A SPAC III are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, A SPAC is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Wendys and A SPAC

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

The idea behind The Wendys Co and A SPAC III 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.