Correlation Between Bloomin Brands and Golden Heaven
Can any of the company-specific risk be diversified away by investing in both Bloomin Brands and Golden Heaven 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 Bloomin Brands and Golden Heaven into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomin Brands and Golden Heaven Group, you can compare the effects of market volatilities on Bloomin Brands and Golden Heaven 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 Bloomin Brands with a short position of Golden Heaven. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomin Brands and Golden Heaven.
Diversification Opportunities for Bloomin Brands and Golden Heaven
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bloomin and Golden is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bloomin Brands and Golden Heaven Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Heaven Group and Bloomin 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 Bloomin Brands are associated (or correlated) with Golden Heaven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Heaven Group has no effect on the direction of Bloomin Brands i.e., Bloomin Brands and Golden Heaven go up and down completely randomly.
Pair Corralation between Bloomin Brands and Golden Heaven
Given the investment horizon of 90 days Bloomin Brands is expected to generate 0.43 times more return on investment than Golden Heaven. However, Bloomin Brands is 2.33 times less risky than Golden Heaven. It trades about -0.08 of its potential returns per unit of risk. Golden Heaven Group is currently generating about -0.15 per unit of risk. If you would invest 2,076 in Bloomin Brands on November 28, 2024 and sell it today you would lose (886.00) from holding Bloomin Brands or give up 42.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomin Brands vs. Golden Heaven Group
Performance |
| Timeline |
| Bloomin Brands |
| Golden Heaven Group |
Bloomin Brands and Golden Heaven Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomin Brands and Golden Heaven
The main advantage of trading using opposite Bloomin Brands and Golden Heaven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomin Brands position performs unexpectedly, Golden Heaven 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 Golden Heaven will offset losses from the drop in Golden Heaven's long position.| Bloomin Brands vs. Dine Brands Global | Bloomin Brands vs. BJs Restaurants | Bloomin Brands vs. The Cheesecake Factory | Bloomin Brands vs. Brinker International |
| Golden Heaven vs. Hurco Companies | Golden Heaven vs. FMC Corporation | Golden Heaven vs. FTAI Aviation Ltd | Golden Heaven vs. Cementos Pacasmayo SAA |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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