Correlation Between Wingstop and First National

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

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

Diversification Opportunities for Wingstop and First National

-0.25

Correlation Coefficient

Wingstop  First National

Very good diversification

The 3 months correlation between Wingstop and First is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Wingstop and First National Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National Financial and Wingstop 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 Wingstop are associated (or correlated) with First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National Financial has no effect on the direction of Wingstop i.e., Wingstop and First National go up and down completely randomly.

Pair Corralation between Wingstop and First National

Given the investment horizon of 90 days Wingstop is expected to under-perform the First National. In addition to that, Wingstop is 1.3 times more volatile than First National Financial. It trades about -0.06 of its total potential returns per unit of risk. First National Financial is currently generating about 0.12 per unit of volatility. If you would invest  2,763  in First National Financial on July 3, 2025 and sell it today you would earn a total of  679.00  from holding First National Financial or generate 24.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Wingstop  vs.  First National Financial

Wingstop

Risk-Adjusted Performance

Weakest

Over the last 90 days Wingstop has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

First National Financial

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in First National Financial are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward indicators, First National reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wingstop and First National

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

The idea behind Wingstop and First National Financial 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.