Correlation Between Wendys and MarineMax

Can any of the company-specific risk be diversified away by investing in both Wendys and MarineMax 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 MarineMax 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 MarineMax, you can compare the effects of market volatilities on Wendys and MarineMax 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 MarineMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wendys and MarineMax.

Diversification Opportunities for Wendys and MarineMax

-0.06

Correlation Coefficient

Wendys  MarineMax

Good diversification

The 3 months correlation between Wendys and MarineMax is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding The Wendys Co and MarineMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarineMax 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 MarineMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarineMax has no effect on the direction of Wendys i.e., Wendys and MarineMax go up and down completely randomly.

Pair Corralation between Wendys and MarineMax

Considering the 90-day investment horizon The Wendys Co is expected to under-perform the MarineMax. But the stock apears to be less risky and, when comparing its historical volatility, The Wendys Co is 1.77 times less risky than MarineMax. The stock trades about -0.1 of its potential returns per unit of risk. The MarineMax is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,121  in MarineMax on May 6, 2025 and sell it today you would earn a total of  148.00  from holding MarineMax or generate 6.98% return on investment over 90 days.

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

The Wendys Co  vs.  MarineMax

The Wendys

Risk-Adjusted Performance

Very Weak

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 September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

MarineMax

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MarineMax are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, MarineMax may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Wendys and MarineMax

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

The idea behind The Wendys Co and MarineMax 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.